DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-02217 | ||
Entity Registrant Name | COCA COLA CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-0628465 | ||
Entity Address, Address Line One | One Coca-Cola Plaza | ||
Entity Address, City or Town | Atlanta, | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30313 | ||
City Area Code | (404) | ||
Local Phone Number | 676-2121 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 258,329,040,018 | ||
Entity Common Stock, Shares Outstanding | 4,312,456,168 | ||
Entity Central Index Key | 0000021344 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the Company’s Proxy Statement for the 2024 Annual Meeting of Shareowners are incorporated by reference in Part III. | ||
Auditor Name | Ernst & Young LLP | ||
Common Stock, $0.25 Par Value | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.25 Par Value | ||
Trading Symbol | KO | ||
Security Exchange Name | NYSE | ||
0.500% Notes Due 2024 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.500% Notes Due 2024 | ||
Trading Symbol | KO24 | ||
Security Exchange Name | NYSE | ||
1.875% Notes Due 2026 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.875% Notes Due 2026 | ||
Trading Symbol | KO26 | ||
Security Exchange Name | NYSE | ||
0.750% Notes Due 2026 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.750% Notes Due 2026 | ||
Trading Symbol | KO26C | ||
Security Exchange Name | NYSE | ||
1.125% Notes Due 2027 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.125% Notes Due 2027 | ||
Trading Symbol | KO27 | ||
Security Exchange Name | NYSE | ||
0.125% Notes Due 2029 KO29A | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.125% Notes Due 2029 | ||
Trading Symbol | KO29A | ||
Security Exchange Name | NYSE | ||
0.125% Notes Due 2029 KO29B | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.125% Notes Due 2029 | ||
Trading Symbol | KO29B | ||
Security Exchange Name | NYSE | ||
0.400% Notes Due 2030 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.400% Notes Due 2030 | ||
Trading Symbol | KO30B | ||
Security Exchange Name | NYSE | ||
1.250% Notes Due 2031 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.250% Notes Due 2031 | ||
Trading Symbol | KO31 | ||
Security Exchange Name | NYSE | ||
0.375% Notes Due 2033 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.375% Notes Due 2033 | ||
Trading Symbol | KO33 | ||
Security Exchange Name | NYSE | ||
0.500% Notes Due 2033 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.500% Notes Due 2033 | ||
Trading Symbol | KO33A | ||
Security Exchange Name | NYSE | ||
1.625% Notes Due 2035 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.625% Notes Due 2035 | ||
Trading Symbol | KO35 | ||
Security Exchange Name | NYSE | ||
1.100% Notes Due 2036 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.100% Notes Due 2036 | ||
Trading Symbol | KO36 | ||
Security Exchange Name | NYSE | ||
0.950% Notes Due 2036 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.950% Notes Due 2036 | ||
Trading Symbol | KO36A | ||
Security Exchange Name | NYSE | ||
0.800% Notes Due 2040 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 0.800% Notes Due 2040 | ||
Trading Symbol | KO40B | ||
Security Exchange Name | NYSE | ||
1.000% Notes Due 2041 | |||
Class of Stock [Line Items] | |||
Title of 12(b) Security | 1.000% Notes Due 2041 | ||
Trading Symbol | KO41 | ||
Security Exchange Name | NYSE |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Atlanta, Georgia |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Operating Revenues | $ 45,754 | $ 43,004 | $ 38,655 |
Cost of goods sold | 18,520 | 18,000 | 15,357 |
Gross Profit | 27,234 | 25,004 | 23,298 |
Selling, general and administrative expenses | 13,972 | 12,880 | 12,144 |
Other operating charges | 1,951 | 1,215 | 846 |
Operating Income | 11,311 | 10,909 | 10,308 |
Interest income | 907 | 449 | 276 |
Interest expense | 1,527 | 882 | 1,597 |
Equity income (loss) — net | 1,691 | 1,472 | 1,438 |
Other income (loss) — net | 570 | (262) | 2,000 |
Income Before Income Taxes | 12,952 | 11,686 | 12,425 |
Income taxes | 2,249 | 2,115 | 2,621 |
Consolidated Net Income | 10,703 | 9,571 | 9,804 |
Net Income (Loss) Attributable to Noncontrolling Interest | (11) | 29 | 33 |
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 10,714 | $ 9,542 | $ 9,771 |
Basic Net Income Per Share1 | $ 2.48 | $ 2.20 | $ 2.26 |
Diluted Net Income Per Share1 | $ 2.47 | $ 2.19 | $ 2.25 |
Average Shares Outstanding — Basic | 4,323 | 4,328 | 4,315 |
Effect of dilutive securities | 16 | 22 | 25 |
Average Shares Outstanding — Diluted | 4,339 | 4,350 | 4,340 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Net Income | $ 10,703 | $ 9,571 | $ 9,804 |
Other comprehensive income | |||
Net foreign currency translation adjustments | 736 | (1,132) | (699) |
Net gains (losses) on derivatives | (178) | 4 | 214 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 24 | 37 | (90) |
Net change in pension and other postretirement benefit liabilities | (109) | 408 | 712 |
Total Comprehensive Income | 11,176 | 8,888 | 9,941 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (158) | (89) | (101) |
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | $ 11,334 | $ 8,977 | $ 10,042 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 9,366 | $ 9,519 |
Short-term investments | 2,997 | 1,043 |
Total Cash, Cash Equivalents and Short-Term Investments | 12,363 | 10,562 |
Marketable securities | 1,300 | 1,069 |
Trade accounts receivable, less allowances of $502 and $516, respectively | 3,410 | 3,487 |
Inventories | 4,424 | 4,233 |
Prepaid expenses and other current assets | 5,235 | 3,240 |
Total Current Assets | 26,732 | 22,591 |
Equity method investments | 19,671 | 18,264 |
Other investments | 118 | 501 |
Other noncurrent assets | 7,162 | 6,189 |
Deferred income tax assets | 1,561 | 1,746 |
Property, plant and equipment — net | 9,236 | 9,841 |
Trademarks with indefinite lives | 14,349 | 14,214 |
Goodwill | 18,358 | 18,782 |
Other intangible assets | 516 | 635 |
Total Assets | 97,703 | 92,763 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 15,485 | 15,749 |
Loans and notes payable | 4,557 | 2,373 |
Current maturities of long-term debt | 1,960 | 399 |
Accrued income taxes | 1,569 | 1,203 |
Total Current Liabilities | 23,571 | 19,724 |
Long-term debt | 35,547 | 36,377 |
Other noncurrent liabilities | 8,466 | 7,922 |
Deferred income tax liabilities | 2,639 | 2,914 |
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY | ||
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares | 1,760 | 1,760 |
Capital surplus | 19,209 | 18,822 |
Reinvested earnings | 73,782 | 71,019 |
Accumulated other comprehensive income (loss) | (14,275) | (14,895) |
Treasury stock, at cost — 2,732 and 2,712 shares, respectively | (54,535) | (52,601) |
Equity Attributable to Shareowners of The Coca-Cola Company | 25,941 | 24,105 |
Equity attributable to noncontrolling interests | 1,539 | 1,721 |
Total Equity | 27,480 | 25,826 |
Total Liabilities and Equity | $ 97,703 | $ 92,763 |
CONSOLIDATED BALANCE SHEETS BAL
CONSOLIDATED BALANCE SHEETS BALANCE SHEET PARENTHETICAL - USD ($) shares in Millions, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 502 | $ 516 |
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 |
Common Stock, Shares Authorized | 11,200 | 11,200 |
Common Stock, Shares, Issued | 7,040 | 7,040 |
Treasury Stock, Common, Shares | 2,732 | 2,712 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Consolidated Net Income | $ 10,703 | $ 9,571 | $ 9,804 |
Depreciation and amortization | 1,128 | 1,260 | 1,452 |
Stock-based compensation expense | 254 | 356 | 337 |
Deferred income taxes | (2) | (122) | 894 |
Equity (income) loss — net of dividends | (1,019) | (838) | (615) |
Foreign currency adjustments | 175 | 203 | 86 |
Significant (gains) losses — net | (492) | (129) | (1,365) |
Other operating charges | 1,741 | 1,086 | 506 |
Other items | (43) | 236 | 201 |
Net change in operating assets and liabilities | (846) | (605) | 1,325 |
Net Cash Provided by Operating Activities | 11,599 | 11,018 | 12,625 |
INVESTING ACTIVITIES | |||
Purchases of investments | (6,698) | (3,751) | (6,030) |
Proceeds from disposals of investments | 4,354 | 4,771 | 7,059 |
Acquisitions of businesses, equity method investments and nonmarketable securities | (62) | (73) | (4,766) |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 430 | 458 | 2,180 |
Purchases of property, plant and equipment | (1,852) | (1,484) | (1,367) |
Proceeds from disposals of property, plant and equipment | 74 | 75 | 108 |
Collateral (paid) received associated with hedging activities — net | 366 | (1,465) | 0 |
Other investing activities | 39 | 706 | 51 |
Net Cash Provided by (Used in) Investing Activities | (3,349) | (763) | (2,765) |
FINANCING ACTIVITIES | |||
Issuances of loans, notes payable and long-term debt | 6,891 | 3,972 | 13,094 |
Payments of loans, notes payable and long-term debt | (5,034) | (4,930) | (12,866) |
Issuances of stock | 539 | 837 | 702 |
Purchases of stock for treasury | (2,289) | (1,418) | (111) |
Dividends | (7,952) | (7,616) | (7,252) |
Other financing activities | (465) | (1,095) | (353) |
Net Cash Provided by (Used in) Financing Activities | (8,310) | (10,250) | (6,786) |
CASH AND CASH EQUIVALENTS | |||
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | (73) | (205) | (159) |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year | (133) | (200) | 2,915 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year | 9,825 | 10,025 | 7,110 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year | 9,692 | 9,825 | 10,025 |
Restricted Cash and Restricted Cash Equivalents | 326 | 306 | 341 |
Cash and cash equivalents | $ 9,366 | $ 9,519 | $ 9,684 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Total Equity Attributable To Shareowners Of The Coca-Cola Company | COMMON STOCK | CAPITAL SURPLUS | Reinvested Earnings | Reinvested Earnings Cumulative Effect, Period of Adoption, Adjustment | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK | Equity Attributable To Noncontrolling Interests |
Balance at beginning of year (in shares) at Dec. 31, 2020 | 4,302 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Treasury stock issued to employees related to stock-based compensation plans | 23 | ||||||||
Purchases of stock for treasury | 0 | ||||||||
Balance at end of year (in shares) at Dec. 31, 2021 | 4,325 | ||||||||
Balance at beginning of year at Dec. 31, 2020 | $ 17,601 | $ 66,555 | $ (14,601) | $ (52,016) | $ 1,985 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock issued to employees related to stock compensation plans | 216 | 375 | |||||||
Stock-based compensation expense | 299 | ||||||||
Other activities | 0 | ||||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 9,771 | 9,771 | |||||||
Dividends (per share — $1.84, $1.76 and $1.68 in 2023, 2022 and 2021, respectively) | (7,251) | ||||||||
Net other comprehensive income (loss) | 271 | ||||||||
Purchases of treasury stock | 0 | ||||||||
Net income attributable to noncontrolling interests | 33 | 33 | |||||||
Net foreign currency translation adjustments | (132) | ||||||||
Dividends paid to noncontrolling interests | (43) | ||||||||
Acquisition of interests held by noncontrolling owners | 0 | ||||||||
Contributions by noncontrolling interests | 20 | ||||||||
Other activities | (2) | ||||||||
Balance at end of year at Dec. 31, 2021 | 18,116 | 69,094 | $ 19 | (14,330) | (51,641) | 1,861 | |||
Common Stock | $ 1,760 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stockholders' Equity Attributable to Parent | $ 22,999 | ||||||||
Treasury stock issued to employees related to stock-based compensation plans | 24 | ||||||||
Purchases of stock for treasury | (21) | ||||||||
Balance at end of year (in shares) at Dec. 31, 2022 | 4,328 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock issued to employees related to stock compensation plans | 373 | 376 | |||||||
Stock-based compensation expense | 332 | ||||||||
Other activities | 1 | ||||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | 9,542 | 9,542 | |||||||
Dividends (per share — $1.84, $1.76 and $1.68 in 2023, 2022 and 2021, respectively) | (7,617) | ||||||||
Net other comprehensive income (loss) | (565) | ||||||||
Purchases of treasury stock | (1,336) | ||||||||
Net income attributable to noncontrolling interests | 29 | 29 | |||||||
Net foreign currency translation adjustments | (118) | ||||||||
Dividends paid to noncontrolling interests | (51) | ||||||||
Acquisition of interests held by noncontrolling owners | 0 | ||||||||
Contributions by noncontrolling interests | 0 | ||||||||
Other activities | 0 | ||||||||
Balance at end of year at Dec. 31, 2022 | 25,826 | 18,822 | 71,019 | 0 | (14,895) | (52,601) | 1,721 | ||
Common Stock | 1,760 | $ 1,760 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stockholders' Equity Attributable to Parent | 24,105 | 24,105 | |||||||
Treasury stock issued to employees related to stock-based compensation plans | 17 | ||||||||
Purchases of stock for treasury | (37) | ||||||||
Balance at end of year (in shares) at Dec. 31, 2023 | 4,308 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stock issued to employees related to stock compensation plans | 177 | 255 | |||||||
Stock-based compensation expense | 233 | ||||||||
Other activities | (3) | ||||||||
Net Income Attributable to Shareowners of The Coca-Cola Company | 10,714 | 10,714 | |||||||
Dividends (per share — $1.84, $1.76 and $1.68 in 2023, 2022 and 2021, respectively) | (7,951) | ||||||||
Net other comprehensive income (loss) | 620 | ||||||||
Purchases of treasury stock | (2,189) | ||||||||
Net income attributable to noncontrolling interests | (11) | (11) | |||||||
Net foreign currency translation adjustments | (147) | (147) | |||||||
Dividends paid to noncontrolling interests | (25) | ||||||||
Acquisition of interests held by noncontrolling owners | (20) | (2) | |||||||
Contributions by noncontrolling interests | 0 | ||||||||
Net change in pension and other postretirement benefit liabilities | 0 | ||||||||
Other activities | 3 | ||||||||
Balance at end of year at Dec. 31, 2023 | 27,480 | $ 19,209 | $ 73,782 | $ 0 | $ (14,275) | $ (54,535) | $ 1,539 | ||
Common Stock | 1,760 | $ 1,760 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Stockholders' Equity Attributable to Parent | $ 25,941 | $ 25,941 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY SHAREOWNERS' EQUITY PARENTHETICAL - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.84 | $ 1.76 | $ 1.68 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES When used in these notes, the terms “The Coca-Cola Company,” “Company,” “we,” “us” and “our” mean The Coca-Cola Company and all entities included in our consolidated financial statements. Description of Business The Coca-Cola Company is a total beverage company. We own or license and market numerous beverage brands, which we group into the following categories: Trademark Coca-Cola; sparkling flavors; water, sports, coffee and tea; juice, value-added dairy and plant-based beverages; and emerging beverages. We own and market several of the world’s largest nonalcoholic sparkling soft drink brands, including Coca-Cola, Sprite, Fanta, Coca-Cola Zero Sugar and Diet Coke/Coca-Cola Light. Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries and territories. We make our branded beverage products available to consumers throughout the world through our network of independent bottling partners, distributors, wholesalers and retailers as well as the Company’s consolidated bottling and distribution operations. Beverages bearing trademarks owned by or licensed to us account for 2.2 billion of the estimated 64 billion servings of all beverages consumed worldwide every day. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. Principles of Consolidation Our Company consolidates all entities that we control by ownership of a majority voting interest. Additionally, there are situations in which consolidation is required even though the usual condition of consolidation (i.e., ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity’s voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which another entity holds a variable interest is referred to as a “VIE.” An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Company holds interests in certain VIEs, primarily bottling operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to equity investments, profit guarantees or subordinated financial support. Refer to Note 12. Although these financial arrangements resulted in our holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance. Our Company’s investments, plus any loans and guarantees, and other subordinated financial support related to these VIEs totaled $1,225 million and $1,626 million as of December 31, 2023 and 2022, respectively, representing our maximum exposures to loss. The Company’s investments, plus any loans and guarantees, related to these VIEs were not individually significant to the Company’s consolidated financial statements. In addition, our Company holds interests in certain VIEs, primarily bottling operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company’s investments, plus any loans and guarantees, related to these VIEs totaled $88 million and $109 million as of December 31, 2023 and 2022, respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company’s consolidated financial statements. Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether the VIEs are accounted for as consolidated entities. We use the equity method to account for investments in companies if our investment provides us with the ability to exercise significant influence over the operating and financial policies of the investee. Our consolidated net income includes our Company’s proportionate share of the net income or loss of these companies. Our judgment regarding the level of influence over each equity method investee includes considering key factors, such as our ownership interest, representation on the board of directors, participation in policy-making decisions, other commercial arrangements and material intercompany transactions. We eliminate from our financial results all significant intercompany transactions, including the intercompany transactions with consolidated VIEs and the intercompany portion of transactions with equity method investees. Revenue Recognition Our Company recognizes revenue when performance obligations under the terms of the contracts with our customers are satisfied. Our performance obligation generally consists of the promise to sell concentrates, syrups or finished products to our bottling partners, wholesalers, distributors or retailers. Refer to Note 3. Advertising Costs Our Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $5 billion, $4 billion and $4 billion in 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, advertising and production costs of $43 million and $35 million, respectively, were primarily recorded in the line item prepaid expenses and other current assets in our consolidated balance sheets. Shipping and Handling Costs Shipping and handling costs related to the movement of goods from our manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statement of income. Shipping and handling costs incurred to move goods from our manufacturing locations or sales distribution centers to our customers are also included in the line item cost of goods sold in our consolidated statement of income, except for costs incurred to distribute goods sold by our consolidated bottlers to our customers, which are included in the line item selling, general and administrative expenses in our consolidated statement of income. Our customers generally do not pay us separately for shipping and handling costs. We recognize the cost of shipping and handling activities that are performed after a customer obtains control of the goods as costs to fulfill our promise to provide goods to the customer. As a result of this election, the Company does not evaluate whether shipping and handling activities are services promised to customers. If revenue is recognized for the related goods before the shipping and handling activities occur, the related costs of those shipping and handling activities are accrued. Sales, Use, Value-Added and Excise Taxes The Company collects taxes imposed directly on its customers related to sales, use, value-added, excise and other similar taxes. The Company then remits such taxes on behalf of its customers to the applicable governmental authorities. We exclude from net operating revenues the tax amounts imposed on revenue-producing transactions that were collected from our customers to be remitted to governmental authorities. Accordingly, such tax amounts are recorded in the line item trade accounts receivable in our consolidated balance sheet when collection of taxes from the customer has not yet occurred and are recorded in the line item accounts payable and accrued expenses in our consolidated balance sheet until they are remitted to the applicable governmental authorities. Taxes imposed directly on the Company, whether based on receipts from sales, inventory procurement costs or manufacturing activities, are recorded in the line item cost of goods sold in our consolidated statement of income. Net Income Per Share Basic net income per share is computed by dividing net income attributable to shareowners of The Coca-Cola Company by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. We excluded 8 million, 8 million and 6 million stock options from the computation of diluted net income per share in 2023, 2022 and 2021, respectively, because the stock options would have been antidilutive. Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents or restricted cash equivalents, as applicable. Restricted cash and restricted cash equivalents generally consist of amounts held by our captive insurance companies, which are included in the line item other noncurrent assets in our consolidated balance sheet. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk. The following table provides a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): December 31, 2023 2022 2021 Cash and cash equivalents $ 9,366 $ 9,519 $ 9,684 Restricted cash and restricted cash equivalents 1,2 326 306 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 9,692 $ 9,825 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 Amounts include cash and cash equivalents related to assets held for sale, which are included in the line item prepaid expenses and other current assets in our consolidated balance sheets. Refer to Note 2. Short-Term Investments We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. Investments in Equity and Debt Securities We measure all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with the change in fair value included in net income. We use quoted market prices to determine the fair value of equity securities with readily determinable fair values. For equity securities without readily determinable fair values, we have elected the measurement alternative under which we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Management assesses each of these investments on an individual basis. Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Refer to Note 4 for additional information on our policy for investments, which includes our assessment of impairments. Trade Accounts Receivable We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any expected loss on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on available relevant information, in addition to historical loss information, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. The Company has a trade accounts receivable factoring program in certain countries. Under this program, we can elect to sell trade accounts receivables to unaffiliated financial institutions at a discount. In these factoring arrangements, for ease of administration, the Company collects customer payments related to the factored receivables and remits those payments to the financial institutions. The Company sold $17,704 million and $10,709 million of trade accounts receivables under this program during the years ended December 31, 2023 and 2022, respectively. The costs of factoring such receivables were $83 million and $27 million for the years ended December 31, 2023 and 2022, respectively. The Company accounts for this program as a sale, and accordingly, the trade receivables sold are excluded from the line item trade accounts receivable in our consolidated balance sheet. The cash received from the financial institutions is classified within the operating activities section in our consolidated statement of cash flows. Inventories Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): December 31, 2023 2022 Raw materials and packaging $ 2,618 $ 2,627 Finished goods 1,449 1,247 Other 357 359 Total inventories $ 4,424 $ 4,233 Derivative Instruments When deemed appropriate, our Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. All derivatives are carried at fair value in our consolidated balance sheet in the following line items, as applicable: prepaid expenses and other current assets; other noncurrent assets; accounts payable and accrued expenses; and other noncurrent liabilities. The cash flow impact of the Company’s derivative instruments is primarily included in our consolidated statement of cash flows in net cash provided by operating activities. Refer to Note 5. Leases We determine if a contract contains a lease at its inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and are included in the line item other noncurrent assets in our consolidated balance sheet. Operating lease liabilities represent our obligation to make lease payments arising from the lease and are included in the line items accounts payable and accrued expenses and other noncurrent liabilities in our consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. When determining the lease term, we include renewal or termination options that we are reasonably certain to exercise. Leases with a lease term of 12 months or less at inception are not recorded in our consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term in our consolidated statement of income. As most of our leases do not provide an implicit interest rate, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When our contracts contain lease and non-lease components, we account for both components as a single lease component. Refer to Note 10. We have various contracts for certain fountain equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. Property, Plant and Equipment Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery and equipment: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewal options that we are reasonably certain to exercise, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under finance leases, totaled $1,018 million, $1,125 million and $1,262 million in 2023, 2022 and 2021, respectively. Amortization expense for leasehold improvements totaled $14 million, $13 million and $15 million in 2023, 2022 and 2021, respectively. The following table summarizes our property, plant and equipment (in millions): December 31, 2023 2022 Land $ 229 $ 611 Buildings and improvements 4,647 4,434 Machinery and equipment 13,593 14,030 Property, plant and equipment — cost 18,469 19,075 Less: Accumulated depreciation 9,233 9,234 Property, plant and equipment — net $ 9,236 $ 9,841 Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present and a recoverability test is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment charge. The impairment charge recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models. These appraisals and models include assumptions we believe are consistent with those a market participant would use. Goodwill, Trademarks and Other Intangible Assets We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization; (2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company’s long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, which is less than 20 years. Refer to Note 7. When events or circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management performs a recoverability test of the carrying value by preparing estimates of sales volume and the resulting profit and cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment charge. The impairment charge recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which include assumptions we believe are consistent with those a market participant would use. We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment tests as of the first day of our third fiscal quarter. We perform impairment tests using various valuation methodologies, including discounted cash flow models and a market approach, to determine the fair value of the indefinite-lived intangible asset or the reporting unit, as applicable. We believe our assumptions are consistent with those a market participant would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, rather than completing the impairment test. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform the impairment testing described above. Otherwise, the Company does not need to perform any further assessment. We perform impairment tests of goodwill at our reporting unit level, which is generally one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our geographic operating segments are generally subdivided into smaller geographic regions. These geographic regions are our reporting units. Our Global Ventures operating segment includes the results of our Costa Limited (“Costa”), innocent and doğadan businesses, as well as fees earned pursuant to distribution coordination agreements between the Company and Monster Beverage Corporation (“Monster”), each of which is its own reporting unit. The Bottling Investments operating segment includes all of our consolidated bottling operations, regardless of geographic location. Generally, each consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. In order to test for goodwill impairment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the impairment charge recognized cannot exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill in order to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company concludes that this is the case, it must perform the impairment testing discussed above. Otherwise, the Company does not need to perform any further assessment. Impairment charges related to intangible assets, including goodwill, are generally recorded in the line item other operating charges or, to the extent they relate to equity method investees, in the line item equity income (loss) — net in our consolidated statement of income. Contingencies Our Company is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties, including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Refer to Note 12. Stock-Based Compensation Our Company grants long-term equity awards under its stock-based compensation plans to certain employees of the Company. These awards include stock options, performance share units, restricted stock and restricted stock units. The fair value of stock option awards is estimated using a Black-Scholes-Merton option-pricing model. The Company recognizes compensation expense on a straight-line basis over the vesting period, which is generally four years. The fair value of restricted stock, restricted stock units and certain performance share units is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period. The Company included a relative total shareowner return (“TSR”) modifier for performance share unit awards granted to executives from 2018 through 2022 as well as for performance share unit awards granted to all participants in 2023. For these awards, the number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range. The fair value of performance share units that include a TSR modifier is determined using a Monte Carlo valuation model. In the reporting period it becomes probable that the minimum performance threshold specified in the performance share unit award will be achieved, we recognize compensation expense for the proportionate share of the total fair value of the performance share units related to the vesting period that has already lapsed for the performance share units expected to vest. The remaining fair value of the performance share units expected to vest is expensed on a straight-line basis over the remainder of the vesting period. In the event the Company determines it is no longer probable that the minimum performance threshold specified in the award will be achieved, we reverse all of the previously recognized compensation expense in the reporting period such a determination is made. The Company has made a policy election to estimate the number of stock-based compensation awards that will ultimately vest to determine the amount of compensation expense recognized each reporting period. Forfeiture estimates are trued-up at the end of each quarter in order to ensure that compensation expense is recognized only for those awards that ultimately vest. Refer to Note 13. Income Taxes Income tax expense includes U.S., state, local and international income taxes. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the book basis and the tax basis of assets and liabilities. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax rate for the year and manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not “more likely than not” to be sustained; (2) the tax position is “more likely than not” to be sustained, but for a lesser amount; or (3) the tax position is “more likely than not” to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and caselaw and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the “more likely than not” recognition threshold would be recognized in income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is “more likely than not” to be sustained; (2) the tax position, amount and/or timing is ultimately settled through negotiation or litigation; or (3) the statute of limitations for the tax position has expired. Refer to Note 12 and Note 15. Translation and Remeasurement We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. Generally, our foreign subsidiaries use the local currency as their functional currency. Changes in the carrying values of these assets and liabilities attributable to fluctuations in spot rates are recognized in net foreign currency translation adjustments, a component of accumulated other comprehensive income (loss) (“AOCI”). Refer to Note 16. Accounts in our consolidated statement of income are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must be remeasured from the applicable currency to the reporting entity’s functional currency. The effects of the remeasurement of these assets and liabilities are recognized in the line item other income (loss) — net in our consolidated stat |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $62 million and $73 million during 2023 and 2022, respectively. During 2021, our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $4,766 million, which primarily related to the acquisition of the remaining ownership interest in BA Sports Nutrition, LLC (“BodyArmor”). BA Sports Nutrition, LLC In November 2021, the Company acquired the remaining 85% ownership interest in, and now owns 100% of, BodyArmor, which offers a line of sports performance and hydration beverages in the United States. We acquired the remaining ownership interest in exchange for approximately $5,600 million of cash, of which $4,745 million was paid at close, net of cash acquired. The purchase price reflected the contractual discount included in the purchase option we obtained with our initial investment in 2018. The remaining $860 million of the purchase price was held back related to indemnification obligations, of which $549 million had been paid as of December 31, 2022 and $311 million was paid in 2023. Upon consolidation, we recognized a gain of $834 million resulting from the remeasurement of our previously held equity interest in BodyArmor to fair value, which was recorded in the line item other income (loss) — net in our consolidated statement of income. The fair value of our previously held equity interest was determined using a discounted cash flow model based on Level 3 inputs, as defined in Note 17. Upon finalization of purchase accounting, $4.2 billion of the purchase price was allocated to the BodyArmor trademark and $2.2 billion was allocated to goodwill, of which $1.2 billion is tax deductible. The goodwill recognized as part of this acquisition is primarily related to the synergistic value created from leveraging the capabilities, assets and scale of the Company and the opportunity for international expansion. It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. Of the total amount allocated to goodwill, $1.9 billion has been assigned to the North America operating segment and $0.3 billion has been assigned to our other geographic operating segments. Divestitures During 2023, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $430 million, which primarily related to sales of our ownership interests in our equity method investees in Indonesia and Pakistan, for which we received cash proceeds of $402 million and a note receivable of $200 million. We recognized a net gain of $94 million as a result of these transactions. During 2022, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $458 million, which primarily related to the refranchising of our bottling operations in Cambodia. We received net cash proceeds of $228 million and recognized a net gain of $153 million as a result of the refranchising. Also included was the sale of our ownership interest in one of our equity method investees, for which we received cash proceeds of $123 million and recognized a net gain of $13 million. During 2021, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $2,180 million, which primarily related to the sale of our ownership interest in Coca-Cola Amatil Limited (“CCA”), an equity method investee, to Coca-Cola Europacific Partners plc (“CCEP”), also an equity method investee. We received cash proceeds of $1,738 million and recognized a net gain of $695 million as a result of the sale and the related reversal of cumulative translation adjustments. Also included were the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee. We received cash proceeds of $293 million and recognized a net gain of $114 million as a result of these sales. All of the gains and losses discussed above were recorded in the line item other income (loss) — net in our consolidated statements of income. Assets and Liabilities Held for Sale As of December 31, 2023, the Company’s bottling operations in the Philippines and Bangladesh and certain bottling operations in India met the criteria to be classified as held for sale and are expected to be refranchised during the first quarter of 2024. As of December 31, 2022, the Company’s bottling operations in Vietnam met the criteria to be classified as held for sale. As a result, we were required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell. As the fair values less any costs to sell exceeded the carrying values, the related assets and liabilities were recorded at their carrying values. These assets and liabilities were included in the Bottling Investments operating segment. In December 2022, the Company received cash proceeds of $823 million in advance of refranchising its bottling operations in Vietnam. This advance was included in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2022, and was included in the line item other investing activities in our consolidated statement of cash flows for the year ended December 31, 2022. The Company refranchised its bottling operations in Vietnam in January 2023 and recognized a net gain of $439 million as a result of the sale, which was recorded in the line item other income (loss) — net in our consolidated statement of income for the year ended December 31, 2023. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our consolidated balance sheets (in millions): December 31, 2023 2022 Cash, cash equivalents and short-term investments $ 37 $ 229 Marketable securities 8 — Trade accounts receivable, less allowances 95 12 Inventories 299 50 Prepaid expenses and other current assets 60 43 Equity method investments 4 — Other noncurrent assets 51 29 Deferred income tax assets 28 8 Property, plant and equipment — net 1,267 197 Goodwill 231 34 Other intangible assets 14 — Assets held for sale $ 2,094 $ 602 Accounts payable and accrued expenses $ 464 $ 154 Loans and notes payable 63 — Accrued income taxes 24 3 Long-term debt 2 — Other noncurrent liabilities 108 3 Deferred income tax liabilities 58 — Liabilities held for sale $ 719 $ 160 |
NET OPERATING REVENUES
NET OPERATING REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NET OPERATING REVENUES Our Company operates in two lines of business: concentrate operations and finished product operations. Our concentrate operations typically generate net operating revenues by selling beverage concentrates, sometimes referred to as “beverage bases,” syrups, including fountain syrups, and certain finished beverages to authorized bottling operations (to which we typically refer as our “bottlers” or our “bottling partners”). Our bottling partners either combine concentrates with still or sparkling water and sweeteners (depending on the product), or combine syrups with still or sparkling water, to produce finished beverages. The finished beverages are packaged in authorized containers, such as cans and refillable and nonrefillable glass and plastic bottles, bearing our trademarks or trademarks licensed to us and are then sold to retailers directly or, in some cases, through wholesalers or other bottlers. In addition, outside the United States, our bottling partners are typically authorized to manufacture fountain syrups, using our concentrates, which they sell to fountain retailers for use in producing beverages for immediate consumption, or to authorized fountain wholesalers who in turn sell and distribute the fountain syrups to fountain retailers. Our concentrate operations are included in our geographic operating segments and our Global Ventures operating segment. Our finished product operations generate net operating revenues by selling sparkling soft drinks and a variety of other finished beverages to retailers, or to distributors and wholesalers who in turn sell the beverages to retailers. Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate operations. These operations consist primarily of our consolidated bottling and distribution operations, which are included in our Bottling Investments operating segment. In certain markets, the Company also operates non-bottling finished product operations in which we sell finished beverages to distributors and wholesalers that are generally not one of the Company’s bottling partners. These operations are generally included in one of our geographic operating segments or our Global Ventures operating segment. Additionally, we sell directly to consumers through retail stores operated by Costa. These sales are included in our Global Ventures operating segment. In the United States, we manufacture fountain syrups and sell them to fountain retailers, who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who in turn sell and distribute the fountain syrups to fountain retailers. These fountain syrup sales are included in our North America operating segment. Revenue is recognized when performance obligations under the terms of the contracts with our customers are satisfied. Our performance obligation generally consists of the promise to sell concentrates, syrups or finished products to our bottling partners, wholesalers, distributors or retailers. Control of the concentrates, syrups or finished products is transferred upon shipment to, or receipt at, our customers’ locations, as determined by the specific terms of the contract. Upon transfer of control to the customer, which completes our performance obligation, revenue is recognized. Our sales terms generally do not allow for a right of return except for matters related to any manufacturing defects on our part. After completion of our performance obligation, we have an unconditional right to consideration as outlined in the contract. Our receivables will generally be collected in less than six months, in accordance with the underlying payment terms. All of our performance obligations under the terms of contracts with our customers have an original duration of one year or less. Our customers and bottling partners may be entitled to cash discounts, funds for promotional and marketing activities, volume-based incentive programs, support for infrastructure programs and other similar programs. In most markets, in an effort to allow our Company and our bottling partners to grow together through shared value, aligned financial objectives and the flexibility necessary to meet consumers’ always changing needs and tastes, we have implemented an incidence-based concentrate pricing model. Under this model, the price we charge bottlers for concentrates they use to prepare and package finished products is impacted by a number of factors, including, but not limited to, the prices charged by the bottlers for such finished products, the channels in which they are sold, and package mix. The amounts associated with the arrangements described above represent variable consideration, an estimate of which is included in the transaction price as a component of net operating revenues in our consolidated statement of income upon completion of our performance obligations. The total revenue recorded, including any variable consideration, cannot exceed the amount for which it is probable that a significant reversal will not occur when uncertainties related to variability are resolved. As a result, we are recognizing revenue based on our faithful depiction of the consideration that we expect to receive. In making our estimates of variable consideration, we consider past results and make significant assumptions related to: (1) customer sales volumes; (2) customer ending inventories; (3) customer selling price per unit; (4) selling channels; and (5) discount rates, rebates and other pricing allowances, as applicable. In gathering data to estimate our variable consideration, we generally calculate our estimates using a portfolio approach at the country and product line level rather than at the individual contract level. The result of making these estimates will impact the line items trade accounts receivable or accounts payable and accrued expenses in our consolidated balance sheet, as applicable. The actual amounts ultimately paid and/or received may be different from our estimates. The change in the amount of variable consideration recognized during the year ended December 31, 2023 related to performance obligations satisfied in prior periods was immaterial. The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions): United States International Total Year Ended December 31, 2023 Concentrate operations $ 8,780 $ 17,759 $ 26,539 Finished product operations 7,770 11,445 19,215 Total $ 16,550 $ 29,204 $ 45,754 Year Ended December 31, 2022 Concentrate operations $ 7,702 $ 16,369 $ 24,071 Finished product operations 7,711 11,222 18,933 Total $ 15,413 $ 27,591 $ 43,004 Year Ended December 31, 2021 Concentrate operations $ 6,551 $ 15,248 $ 21,799 Finished product operations 6,459 10,397 16,856 Total $ 13,010 $ 25,645 $ 38,655 Refer to Note 20 for additional revenue disclosures by operating segment and Corporate. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS We measure all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with the change in fair value included in net income. We use quoted market prices to determine the fair values of equity securities with readily determinable fair values. For equity securities without readily determinable fair values, we have elected the measurement alternative under which we measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Management assesses each of these investments on an individual basis. Our investments in debt securities are carried at either amortized cost or fair value. The cost basis is determined by the specific identification method. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and losses on trading debt securities as well as realized gains and losses on available-for-sale debt securities are included in net income. Unrealized gains and losses, net of tax, on available-for-sale debt securities are included in our consolidated balance sheet as a component of AOCI, except for the changes in fair values attributable to the currency risk being hedged, if applicable, which are included in net income. Refer to Note 5 for additional information related to the Company’s fair value hedges of available-for-sale debt securities. Equity securities with readily determinable fair values that are not accounted for under the equity method and debt securities classified as trading are not assessed for impairment, since they are carried at fair value with the change in fair value included in net income. Equity method investments, equity securities without readily determinable fair values and debt securities classified as available-for-sale or held-to-maturity are reviewed each reporting period to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, we evaluate the fair value compared to our cost basis in the investment. We also perform this evaluation every reporting period for each investment for which our cost basis has exceeded the fair value. The fair values of most of our Company’s investments in publicly traded companies are readily available based on quoted market prices. For investments in nonpublicly traded companies, management’s assessment of fair value is based on various valuation methodologies, including discounted cash flows, estimates of sales proceeds, and appraisals, as appropriate. We consider the assumptions that we believe a market participant would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. The ability to accurately predict future cash flows, especially in emerging and developing markets, may impact the determination of fair value. In the event the fair value of an investment declines below our cost basis, management is required to determine if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management’s assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the issuer; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Equity Securities The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions): Fair Value with Changes Recognized in Income Measurement Alternative — December 31, 2023 Marketable securities $ 345 $ — Other investments 76 42 Other noncurrent assets 1,585 — Total equity securities $ 2,006 $ 42 December 31, 2022 Marketable securities $ 308 $ — Other investments 459 42 Other noncurrent assets 1,303 — Total equity securities $ 2,070 $ 42 The calculation of net unrealized gains and losses recognized during the year related to equity securities still held at the end of the year is as follows (in millions): Year Ended December 31, 2023 2022 Net gains (losses) recognized during the year related to equity securities $ 371 $ (236) Less: Net gains (losses) recognized during the year related to equity securities sold during the year 52 7 Net unrealized gains (losses) recognized during the year related to equity securities still held at $ 319 $ (243) Debt Securities Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Fair Value Cost Gains Losses December 31, 2023 Trading securities $ 43 $ — $ (2) $ 41 Available-for-sale securities 1,136 26 (28) 1,134 Total debt securities $ 1,179 $ 26 $ (30) $ 1,175 December 31, 2022 Trading securities $ 43 $ — $ (4) $ 39 Available-for-sale securities 979 26 (61) 944 Total debt securities $ 1,022 $ 26 $ (65) $ 983 The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2023 December 31, 2022 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 41 $ 914 $ 39 $ 722 Other noncurrent assets — 220 — 222 Total debt securities $ 41 $ 1,134 $ 39 $ 944 The contractual maturities of these available-for-sale debt securities as of December 31, 2023 were as follows (in millions): Cost Estimated Within 1 year $ 484 $ 483 After 1 year through 5 years 420 427 After 5 years through 10 years 37 48 After 10 years 195 176 Total $ 1,136 $ 1,134 The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations. The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions): Year Ended December 31, 2023 2022 2021 Gross gains $ 3 $ 5 $ 6 Gross losses (10) (136) (10) Proceeds 361 1,498 1,197 Captive Insurance Companies In accordance with local insurance regulations, our consolidated captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans. This captive’s solvency capital funds included total equity and debt securities of $1,643 million and $1,378 million as of December 31, 2023 and 2022, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations. |
HEDGING TRANSACTIONS AND DERIVA
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” When deemed appropriate, our Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative and non-derivative financial instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. The Company uses various types of derivative instruments, including, but not limited to, forward contracts, commodity futures contracts, option contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date and at a predetermined rate or price. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency or commodity at a predetermined rate or price during a period or at a time in the future. A collar is a strategy that uses a combination of options to limit the range of possible positive or negative returns on an underlying asset or liability to a specific range, or to protect expected future cash flows. To do this, an investor simultaneously buys a put option and sells (writes) a call option, or alternatively buys a call option and sells (writes) a put option. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative financial instruments for trading purposes. The Company may also designate certain non-derivative instruments, such as our foreign currency denominated third-party debt, in hedging relationships. All derivative instruments are carried at fair value in our consolidated balance sheet, primarily in the following line items, as applicable: prepaid expenses and other current assets; other noncurrent assets; accounts payable and accrued expenses; and other noncurrent liabilities. The carrying values of the derivatives reflect the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. These master netting agreements allow the Company to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our consolidated statement of income as the changes in the fair values of the hedged items attributable to the risk being hedged. The changes in the fair values of derivatives that have been designated and qualify as cash flow hedges or hedges of net investments in foreign operations are recorded in AOCI and are reclassified into the line item in our consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in the values of the derivative instruments are generally offset by changes in the fair values or cash flows of the underlying exposures being hedged. The changes in the fair values of derivatives that were not designated and/or did not qualify as hedging instruments are immediately recognized in earnings. For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. Refer to Note 17. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates, commodity rates or other financial indices. The Company does not view the fair values of its derivatives in isolation but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets. The following table presents the fair values of the Company’s derivative instruments that were designated and qualified as part of a hedging relationship (in millions): Fair Value 1,2 Derivatives Designated as Hedging Instruments Financial Statement Line Item Impacted 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 109 $ 126 Foreign currency contracts Other noncurrent assets 13 13 Interest rate contracts Other noncurrent assets 50 — Total assets $ 172 $ 139 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 111 $ 54 Foreign currency contracts Other noncurrent liabilities 40 108 Commodity contracts Accounts payable and accrued expenses 3 2 Interest rate contracts Accounts payable and accrued expenses 5 — Interest rate contracts Other noncurrent liabilities 1,113 1,676 Total liabilities $ 1,272 $ 1,840 1 All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 17 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 17 for additional information related to the estimated fair value. The following table presents the fair values of the Company’s derivative instruments that were not designated as hedging instruments (in millions): Fair Value 1,2 Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 91 $ 46 Foreign currency contracts Other noncurrent assets 3 22 Commodity contracts Prepaid expenses and other current assets 5 34 Other derivative instruments Prepaid expenses and other current assets 4 — Total assets $ 103 $ 102 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 106 $ 87 Foreign currency contracts Other noncurrent liabilities 3 1 Commodity contracts Accounts payable and accrued expenses 62 35 Commodity contracts Other noncurrent liabilities 1 — Other derivative instruments Accounts payable and accrued expenses 4 3 Total liabilities $ 176 $ 126 1 All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 17 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 17 for additional information related to the estimated fair value. Credit Risk Associated with Derivatives We have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. We monitor counterparty exposures regularly and review any downgrade in credit rating immediately. If a downgrade in the credit rating of a counterparty were to occur, we have provisions requiring collateral for substantially all of our transactions. To mitigate presettlement risk, minimum credit standards become more stringent as the duration of the derivative financial instrument increases. In addition, the Company’s master netting agreements reduce credit risk by permitting the Company to net settle for transactions with the same counterparty. To minimize the concentration of credit risk, we enter into derivative transactions with a portfolio of financial institutions. Furthermore, for certain derivative financial instruments, the Company has agreements with counterparties that require collateral to be exchanged based on changes in the fair value of the instruments. The Company classifies collateral payments and receipts as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. As a result of these factors, we consider the risk of counterparty default to be minimal. Cash Flow Hedging Strategy The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, commodity prices or interest rates. The changes in the fair values of derivatives designated as cash flow hedges are recorded in AOCI and are reclassified into the line item in our consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is typically three years. The Company maintains a foreign currency cash flow hedging program to reduce the risk that our U.S. dollar net cash inflows from sales outside the United States and U.S. dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates. We enter into forward contracts and purchase foreign currency options and collars (principally euro, British pound and Japanese yen) to hedge certain portions of forecasted cash flows denominated in foreign currencies. When the U.S. dollar strengthens against the foreign currencies, the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments. The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $9,408 million and $5,510 million as of December 31, 2023 and 2022, respectively. The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt and other monetary assets or liabilities due to changes in foreign currency exchange rates. For this hedging program, the Company recognizes in earnings each period the changes in carrying values of these foreign currency denominated assets and liabilities due to fluctuations in exchange rates. The changes in fair values of the cross-currency swap derivatives are recorded in AOCI with an immediate reclassification into earnings for the changes in fair values attributable to fluctuations in foreign currency exchange rates. The total notional value of derivatives that were designated as cash flow hedges for the Company’s foreign currency denominated assets and liabilities was $958 million as of both December 31, 2023 and 2022. The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities. The total notional values of derivatives that were designated and qualified for this program were $54 million and $35 million as of December 31, 2023 and 2022, respectively. Our Company monitors our mix of short-term debt and long-term debt regularly. We manage our risk to interest rate fluctuations through the use of derivative financial instruments. From time to time, the Company has entered into interest rate swap agreements and has designated these instruments as part of the Company’s interest rate cash flow hedging program. The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Company’s future interest payments. The total notional value of derivatives that were designated and qualified for the Company’s interest rate cash flow hedging program was $750 million as of December 31, 2023. There were no derivatives that were designated and qualified for the Company’s interest rate cash flow hedging program as of December 31, 2022. The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions): Gain (Loss) Financial Statement Line Item Impacted Gain (Loss) 2023 Foreign currency contracts $ (128) Net operating revenues $ (3) Foreign currency contracts 19 Cost of goods sold 14 Foreign currency contracts — Interest expense (4) Foreign currency contracts 35 Other income (loss) — net 17 Commodity contracts (15) Cost of goods sold (14) Total $ (89) $ 10 2022 Foreign currency contracts $ 205 Net operating revenues $ 218 Foreign currency contracts 17 Cost of goods sold 28 Foreign currency contracts — Interest expense (4) Foreign currency contracts (91) Other income (loss) — net (79) Commodity contracts (4) Cost of goods sold (2) Total $ 127 $ 161 2021 Foreign currency contracts $ 36 Net operating revenues $ (77) Foreign currency contracts (2) Cost of goods sold (10) Foreign currency contracts — Interest expense (13) Foreign currency contracts 19 Other income (loss) — net 74 Interest rate contracts 110 Interest expense (90) Commodity contracts (1) Cost of goods sold — Total $ 162 $ (116) As of December 31, 2023, the Company estimates that it will reclassify into earnings during the next 12 months net losses of $72 million from the pretax amount recorded in AOCI as the anticipated cash flows occur. Fair Value Hedging Strategy The Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. The Company also uses cross-currency interest rate swaps to hedge the changes in the fair value of foreign currency denominated debt relating to fluctuations in foreign currency exchange rates and benchmark interest rates. The changes in the fair values of derivatives designated as fair value hedges and the offsetting changes in the fair values of the hedged items are recognized in earnings. As a result, any difference is reflected in earnings as ineffectiveness. When a derivative is no longer designated as a fair value hedge for any reason, including termination and maturity, the remaining unamortized difference between the carrying value of the hedged item at that time and the face value of the hedged item is amortized to earnings over the remaining life of the hedged item, or immediately if the hedged item has matured or has been extinguished. The total notional values of derivatives that were designated and qualified as fair value hedges of this type were $13,693 million and $13,425 million as of December 31, 2023 and 2022, respectively. The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions): Hedging Instruments and Hedged Items Financial Statement Line Item Impacted Gain (Loss) 2023 Interest rate contracts Interest expense $ 609 Fixed-rate debt Interest expense (591) Net impact of fair value hedging instruments $ 18 2022 Interest rate contracts Interest expense $ (1,944) Fixed-rate debt Interest expense 1,927 Net impact of fair value hedging instruments $ (17) 2021 Interest rate contracts Interest expense $ (67) Fixed-rate debt Interest expense 66 Net impact of fair value hedging instruments $ (1) The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions): Cumulative Amount of Fair Value Hedging Adjustments 1 Carrying Values of Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued Balance Sheet Location of Hedged Items December 31, December 31, December 31, December 31, December 31, December 31, Current maturities of long-term debt $ 552 $ — $ 1 $ — $ — $ — Long-term debt 12,186 11,900 (1,135) (1,664) 162 195 1 Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations. In June 2023, the Company amended the terms of its interest rate swap agreements to implement a forward-looking interest rate based on the Secured Overnight Financing Rate (“SOFR”) in place of the London Interbank Offered Rate (“LIBOR”). Since the interest rate swap agreements were affected by reference rate reform, the Company applied the expedients and exceptions provided to preserve the past presentation of its derivatives without de-designating the existing hedging relationships. All amendments to interest rate swap agreements were executed with the existing counterparties and did not change the notional amounts, maturity dates or other critical terms of the hedging relationships. Hedges of Net Investments in Foreign Operations Strategy The Company uses forward contracts and a portion of its foreign currency denominated debt, a non-derivative financial instrument, to protect the value of our net investments in a number of foreign operations. For derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the fair values of the derivative financial instruments are recognized in net foreign currency translation adjustments, a component of AOCI, to offset the changes in the values of the net investments being hedged. For non-derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the carrying values of the designated portions of the non-derivative financial instruments due to fluctuations in foreign currency exchange rates are recorded in net foreign currency translation adjustments. Any ineffective portions of net investment hedges are reclassified from AOCI into earnings during the period of change. The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions): Notional Values Gain (Loss) Recognized in OCI as of December 31, Year Ended December 31, 2023 2022 2023 2022 2021 Foreign currency contracts $ 150 $ — $ (6) $ (10) $ (10) Foreign currency denominated debt 12,437 12,061 (376) 751 928 Total $ 12,587 $ 12,061 $ (382) $ 741 $ 918 The Company did not reclassify any gains or losses related to net investment hedges from AOCI into earnings during the years ended December 31, 2023 and 2022. The Company reclassified a loss of $4 million related to net investment hedges from AOCI into earnings during the year ended December 31, 2021. In addition, the Company did not have any ineffectiveness related to net investment hedges during the years ended December 31, 2023, 2022 and 2021. The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified in the line item other investing activities in our consolidated statement of cash flows. Economic (Non-Designated) Hedging Strategy In addition to derivative instruments that have been designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of foreign currency, interest rate and commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in the fair values of economic hedges are immediately recognized in earnings. The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. The changes in the fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized in earnings in the line item other income (loss) — net in our consolidated statement of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates, including those related to certain acquisition and divestiture activities. The changes in the fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are immediately recognized in earnings in the line items net operating revenues, cost of goods sold or other income (loss) — net in our consolidated statement of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $6,989 million and $4,902 million as of December 31, 2023 and 2022, respectively. The Company uses interest rate contracts as economic hedges to minimize exposure to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. There were no interest rate contracts used as economic hedges as of December 31, 2023 and 2022. The Company also uses certain derivatives as economic hedges to mitigate the price risk associated with the purchase of materials used in the manufacturing process and vehicle fuel. The changes in the fair values of these economic hedges are immediately recognized in earnings in the line items net operating revenues, cost of goods sold, or selling, general and administrative expenses in our consolidated statement of income, as applicable. The total notional values of derivatives related to our economic hedges of this type were $325 million and $336 million as of December 31, 2023 and 2022, respectively. The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted Gain (Loss) Recognized in Income Year Ended December 31, 2023 2022 2021 Foreign currency contracts Net operating revenues $ (74) $ (55) $ 6 Foreign currency contracts Cost of goods sold 66 46 (10) Foreign currency contracts Other income (loss) — net (10) 57 (84) Commodity contracts Cost of goods sold (137) (40) 171 Interest rate contracts Interest expense — — (187) Other derivative instruments Selling, general and administrative expenses 5 (21) 34 Other derivative instruments Other income (loss) — net — — (3) Total $ (150) $ (13) $ (73) |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Our consolidated net income includes our Company’s proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. The Company’s proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statement of income and our carrying value of those investments. Refer to Note 18 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity method investees’ AOCI. We eliminate from our financial results all significant intercompany transactions to the extent of our ownership interest, including the intercompany portion of transactions with equity method investees. The Company’s equity method investments include, but are not limited to, our ownership interests in CCEP; Monster; AC Bebidas, S. de R.L. de C.V.; Coca-Cola FEMSA, S.A.B. de C.V.; Coca-Cola HBC AG; and Coca-Cola Bottlers Japan Holdings Inc. As of December 31, 2023, we owned 19%, 20%, 20%, 28%, 21% and 18%, respectively, of these companies’ outstanding shares. As of December 31, 2023, our investments in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $8,634 million. This difference is not amortized. A summary of financial information for our equity method investees in the aggregate is as follows (in millions): Year Ended December 31, 1 2023 2022 2021 Net operating revenues $ 93,862 $ 85,116 $ 79,934 Cost of goods sold 55,780 52,051 47,847 Gross profit $ 38,082 $ 33,065 $ 32,087 Operating income $ 11,868 $ 9,719 $ 9,089 Consolidated net income $ 7,657 $ 6,373 $ 6,050 Less: Net income attributable to noncontrolling interests 75 102 91 Net income attributable to common shareowners $ 7,582 $ 6,271 $ 5,959 Company equity income (loss) — net $ 1,691 $ 1,472 $ 1,438 1 The financial information represents the results of the equity method investees during the Company’s period of ownership. December 31, 2023 2022 Current assets $ 35,087 $ 32,722 Noncurrent assets 74,464 70,523 Total assets $ 109,551 $ 103,245 Current liabilities $ 26,929 $ 23,580 Noncurrent liabilities 33,989 34,740 Total liabilities $ 60,918 $ 58,320 Equity attributable to shareowners of investees $ 47,473 $ 43,917 Equity attributable to noncontrolling interests 1,160 1,008 Total equity $ 48,633 $ 44,925 Company equity method investments $ 19,671 $ 18,264 Net sales to equity method investees, the majority of which are located outside the United States, were $17,736 million, $16,084 million and $14,471 million in 2023, 2022 and 2021, respectively. Total payments, primarily related to marketing, made to equity method investees were $294 million, $396 million and $516 million in 2023, 2022 and 2021, respectively. The increase in net sales to equity method investees in 2023 was primarily due to volume growth and favorable pricing initiatives. In addition, purchases of beverage products from equity method investees were $579 million, $505 million and $496 million in 2023, 2022 and 2021, respectively. The following table presents the difference between calculated fair value, based on quoted closing prices of publicly traded shares, and our Company’s carrying value in investments in publicly traded companies accounted for under the equity method (in millions): December 31, 2023 Fair Value Carrying Value Difference Monster Beverage Corporation $ 11,766 $ 4,837 $ 6,929 Coca-Cola Europacific Partners plc 5,870 3,858 2,012 Coca-Cola FEMSA, S.A.B. de C.V. 5,549 2,092 3,457 Coca-Cola HBC AG 2,296 1,252 1,044 Coca-Cola Consolidated, Inc. 2,304 473 1,831 Coca-Cola Bottlers Japan Holdings Inc. 484 367 117 Coca-Cola İçecek A.Ş. 911 228 683 Embotelladora Andina S.A. 137 90 47 Total $ 29,317 $ 13,197 $ 16,120 Net Receivables and Dividends from Equity Method Investees Total net receivables due from equity method investees were $1,527 million and $1,191 million as of December 31, 2023 and 2022, respectively. The total amount of dividends received from equity method investees was $672 million, $634 million and $823 million for the years ended December 31, 2023, 2022 and 2021, respectively. The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2023 was $8,005 million. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Indefinite-Lived Intangible Assets The following table presents the carrying values of indefinite-lived intangible assets included in our consolidated balance sheets (in millions): December 31, 2023 2022 Trademarks $ 14,349 $ 14,214 Goodwill 18,358 18,782 Other 161 175 Indefinite-lived intangible assets $ 32,868 $ 33,171 The following table provides information related to the carrying value of our goodwill by operating segment (in millions): Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Total 2022 Balance at beginning of year $ 1,280 $ 200 $ 10,665 $ 422 $ 2,976 $ 3,820 $ 19,363 Effect of foreign currency translation (83) 3 — (12) (272) (239) (603) Acquisitions — — — — — 4 4 Purchase accounting adjustments — — 12 2 9 — 23 Divestitures, deconsolidations — — — — (5) — (5) Balance at end of year $ 1,197 $ 203 $ 10,677 $ 412 $ 2,708 $ 3,585 $ 18,782 2023 Balance at beginning of year $ 1,197 $ 203 $ 10,677 $ 412 $ 2,708 $ 3,585 $ 18,782 Effect of foreign currency translation (44) 6 — (11) 120 (264) (193) Divestitures, deconsolidations and other 1 — — — — — (231) (231) Balance at end of year $ 1,153 $ 209 $ 10,677 $ 401 $ 2,828 $ 3,090 $ 18,358 1 The decrease in the Bottling Investments segment was a result of the Company’s bottling operations in the Philippines being classified as held for sale. Refer to Note 2. Definite-Lived Intangible Assets The following table provides information related to definite-lived intangible assets (in millions): December 31, 2023 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Carrying Gross Carrying Accumulated Amortization Net Carrying Customer relationships $ 309 $ (118) $ 191 $ 354 $ (109) $ 245 Trademarks 70 (30) 40 147 (84) 63 Other 183 (59) 124 206 (54) 152 Total $ 562 $ (207) $ 355 $ 707 $ (247) $ 460 Total amortization expense for intangible assets subject to amortization was $94 million, $120 million and $165 million in 2023, 2022 and 2021, respectively. Based on the carrying value of definite-lived intangible assets as of December 31, 2023, we estimate our amortization expense for the next five years will be as follows (in millions): Amortization 2024 $ 61 2025 54 2026 42 2027 42 2028 34 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLES AND ACCRUED EXPENSES | ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following (in millions): December 31, 2023 2022 Accounts payable $ 5,590 $ 5,307 Accrued marketing expenses 2,870 2,778 Accrued compensation 1,394 1,087 Other accrued expenses 1,2 5,631 6,577 Accounts payable and accrued expenses $ 15,485 $ 15,749 1 Includes liabilities held for sale of $719 million and $160 million as of December 31, 2023 and 2022, respectively. Refer to Note 2. 2 |
SUPPLY CHAIN FINANCE PROGRAM
SUPPLY CHAIN FINANCE PROGRAM | 12 Months Ended |
Dec. 31, 2023 | |
Text Block [Abstract] | |
Supplier Finance Program | SUPPLY CHAIN FINANCE PROGRAM Our current payment terms with the majority of our suppliers are 120 days. Two global financial institutions offer a voluntary supply chain finance (“SCF”) program, which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them. The SCF program is available to suppliers of goods and services included in cost of goods sold and selling, general and administrative expenses in our consolidated statement of income. The Company and our suppliers agree on contractual terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. The suppliers sell goods or services, as applicable, to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions. Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF program. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable and accrued expenses |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | LEASES We have operating leases primarily for real estate, manufacturing and other equipment, aircraft and vehicles. Balance sheet information related to operating leases is as follows (in millions): December 31, 2023 2022 Operating lease ROU assets 1 $ 1,328 $ 1,406 Current portion of operating lease liabilities 2 $ 361 $ 341 Noncurrent portion of operating lease liabilities 3 1,001 1,113 Total operating lease liabilities $ 1,362 $ 1,454 1 Operating lease ROU assets are included in the line item other noncurrent assets in our consolidated balance sheets. 2 The current portion of operating lease liabilities is included in the line item accounts payable and accrued expenses in our consolidated balance sheets. 3 The noncurrent portion of operating lease liabilities is included in the line item other noncurrent liabilities in our consolidated balance sheets. We had operating lease costs of $397 million for both the years ended December 31, 2023 and 2022. During 2023 and 2022, cash paid for amounts included in the measurement of operating lease liabilities was $389 million and $400 million, respectively. Operating lease ROU assets obtained in exchange for operating lease obligations were $328 million and $337 million for the years ended December 31, 2023 and 2022, respectively. Information associated with the measurement of our operating lease liabilities as of December 31, 2023 is as follows: Weighted-average remaining lease term 8 years Weighted-average discount rate 3.4 % Our leases have remaining lease terms of 1 year to 41 years, inclusive of renewal or termination options that we are reasonably certain to exercise. The following table summarizes the maturities of our operating lease liabilities as of December 31, 2023 (in millions): Maturities of Operating Lease Liabilities 2024 $ 395 2025 254 2026 197 2027 153 2028 111 Thereafter 412 Total operating lease payments 1,522 Less: Imputed interest 160 Total operating lease liabilities $ 1,362 |
DEBT AND BORROWING ARRANGEMENTS
DEBT AND BORROWING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT AND BORROWING ARRANGEMENTS | DEBT AND BORROWING ARRANGEMENTS Loans and Notes Payable Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2023 and 2022, we had $4,209 million and $2,146 million, respectively, in outstanding commercial paper borrowings. Our weighted-average interest rates for commercial paper outstanding were 5.3% and 4.2% as of December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company also had $348 million and $227 million, respectively, in lines of credit, short-term credit facilities and other short-term borrowings that were related to our international operations. In addition, we had $6,159 million in unused lines of credit and other short-term credit facilities as of December 31, 2023, of which $4,550 million was in corporate backup lines of credit for general purposes. These backup lines of credit expire at various times through 2028. There were no borrowings under these corporate backup lines of credit during 2023. These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements require compensating balances, none of which was significant to our Company. Long-Term Debt The Company’s long-term debt consisted of the following (in millions except average rate data): December 31, 2023 December 31, 2022 Amount Average Rate 1 Amount Average Rate 1 Fixed interest rate long-term debt: U.S. dollar notes due 2024-2093 $ 21,982 3.2 % $ 21,966 2.5 % U.S. dollar debentures due 2023-2098 788 4.8 891 4.7 Australian dollar notes due 2024 374 2.7 374 2.7 Euro notes due 2024-2041 12,888 2.7 12,485 0.7 Swiss franc notes due 2028 684 6.0 623 3.2 Other, due through 2098 2 1,763 8.1 1,906 6.7 Fair value adjustments 3 (972) N/A (1,469) N/A Total 4,5 37,507 3.4 % 36,776 2.3 % Less: Current portion 1,960 399 Long-term debt $ 35,547 $ 36,377 1 Rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effective amount of interest rate swap agreements and cross-currency swap agreements, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. 2 As of December 31, 2023 and 2022, the amounts include $1,211 million and $1,368 million, respectively, of debt instruments related to our bottling operations in Africa due through 2026. 3 Amounts represent the changes in fair values due to changes in benchmark interest rates. Refer to Note 5 for additional information about our fair value hedging strategy. 4 As of December 31, 2023 and 2022, the fair value of our long-term debt, including the current portion, was $33,445 million and $32,698 million, respectively. 5 The above notes and debentures include various restrictions, none of which was significant to our Company. Total interest paid was $1,415 million, $848 million and $738 million in 2023, 2022 and 2021, respectively. During 2021, the Company extinguished prior to maturity fixed interest rate U.S. dollar notes and euro notes of $6,500 million and €2,430 million, respectively, with maturity dates ranging from 2023 to 2026 and interest rates ranging from 0.750% to 3.200%. These extinguishments resulted in associated charges of $559 million recorded in the line item interest expense in our consolidated statement of income. These charges included the difference between the reacquisition price and the net carrying value of the notes extinguished, including the impact of the related fair value hedging relationships. We also incurred charges of $91 million as a result of the reclassification of related cash flow hedging balances from AOCI into income. The following table summarizes the maturities of long-term debt for the five years succeeding December 31, 2023 (in millions): Maturities of 2024 $ 1,960 2025 1,070 2026 1,810 2027 4,616 2028 2,770 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees As of December 31, 2023, we were contingently liable for guarantees of indebtedness owed by third parties of $633 million, of which $87 million was related to VIEs. Refer to Note 1 for additional information related to the Company’s maximum exposure to loss due to our involvement with VIEs. Our guarantees are primarily related to third-party customers, bottlers and vendors and arose through the normal course of business. These guarantees have various terms, and none of these guarantees is individually significant. These amounts represent the maximum potential future payments that we could be required to make under the guarantees. However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not probable. Concentrations of Credit Risk We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. Legal Contingencies The Company is involved in various legal proceedings. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. Management believes that the total liabilities of the Company that may arise as a result of currently pending legal proceedings (excluding tax audit claims) will not have a material adverse effect on the Company taken as a whole. Indemnifications At the time we acquire or divest an ownership interest in an entity, we sometimes agree to indemnify the seller or buyer for specific contingent liabilities. Management believes that any liability to the Company that may arise as a result of any such indemnification agreements will not have a material adverse effect on the Company taken as a whole. Tax Audits The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. These uncertain tax matters may result in the assessment of additional taxes. Refer to Note 15. On September 17, 2015, the Company received a Statutory Notice of Deficiency (“Notice”) from the United States Internal Revenue Service (“IRS”) seeking approximately $3.3 billion of additional federal income tax for years 2007 through 2009. In the Notice, the IRS stated its intent to reallocate over $9 billion of income to the U.S. parent company from certain of its foreign affiliates that the U.S. parent company licensed to manufacture, distribute, sell, market and promote its products in certain non-U.S. markets. The Notice concerned the Company’s transfer pricing between its U.S. parent company and certain of its foreign affiliates. IRS rules governing transfer pricing require arm’s-length pricing of transactions between related parties such as the Company’s U.S. parent and its foreign affiliates. To resolve the same transfer pricing issue for the tax years 1987 through 1995, the Company and the IRS had agreed in 1996 on an arm’s-length methodology for determining the amount of U.S. taxable income that the U.S. parent company would report as compensation from its foreign licensees. The Company and the IRS memorialized this accord in a closing agreement resolving that dispute (“Closing Agreement”). The Closing Agreement provided that, absent a change in material facts or circumstances or relevant federal tax law, in calculating the Company’s income taxes going forward, the Company would not be assessed penalties by the IRS for using the agreed-upon tax calculation methodology that the Company and the IRS agreed would be used for the 1987 through 1995 tax years. The IRS audited and confirmed the Company’s compliance with the agreed-upon Closing Agreement methodology in five successive audit cycles for tax years 1996 through 2006. The September 17, 2015 Notice from the IRS retroactively rejected the previously agreed-upon methodology for the 2007 through 2009 tax years in favor of an entirely different methodology, without prior notice to the Company. Using the new tax calculation methodology, the IRS reallocated over $9 billion of income to the U.S. parent company from its foreign licensees for tax years 2007 through 2009. Consistent with the Closing Agreement, the IRS did not assert penalties, and it has yet to do so. The IRS designated the Company’s matter for litigation on October 15, 2015. Litigation designation is an IRS determination that forecloses to a company any and all alternative means for resolution of a tax dispute. As a result of the IRS’ designation of the Company’s matter for litigation, the Company was forced to either accept the IRS’ newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts. The matter remains subject to the IRS’ litigation designation, preventing the Company from any attempt to settle or otherwise mutually resolve the matter with the IRS. The Company consequently initiated litigation by filing a petition in the U.S. Tax Court (“Tax Court”) in December 2015, challenging the tax adjustments enumerated in the Notice. Prior to trial, the IRS increased its transfer pricing adjustment by $385 million, resulting in an additional tax adjustment of $135 million. The Company obtained a summary judgment in its favor on a different matter related to Mexican foreign tax credits, which thereafter effectively reduced the IRS’ potential tax adjustment by $138 million. The trial was held in the Tax Court from March through May 2018, and final post-trial briefs were filed and exchanged in April 2019. On November 18, 2020, the Tax Court issued an opinion (“Opinion”) in which it predominantly sided with the IRS but agreed with the Company that dividends previously paid by the foreign licensees to the U.S. parent company in reliance upon the Closing Agreement should continue to be allowed to offset royalties, including those that would become payable to the Company in accordance with the Opinion. On November 8, 2023, the Tax Court issued a supplemental opinion (together with the original Tax Court opinion, “Opinions”), siding with the IRS in concluding both that the blocked-income regulations apply to the Company’s operations and that the Tax Court opinion in 3M Co. & Subs. v. Commissioner (February 9, 2023) controlled as to the validity of those regulations. The Company believes that the IRS and the Tax Court misinterpreted and misapplied the applicable regulations in reallocating income earned by the Company’s foreign licensees to increase the Company’s U.S. tax. Moreover, the Company believes that the retroactive imposition of such tax liability using a calculation methodology different from that previously agreed upon by the IRS and the Company, and audited by the IRS for over a decade, is unconstitutional. The Company intends to assert its claims on appeal and vigorously defend its position. In determining the amount of tax reserve to be recorded as of December 31, 2020, the Company completed the required two-step evaluation process prescribed by Accounting Standards Codification 740, Accounting for Income Taxes . In doing so, we consulted with outside advisors, and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, the Opinions and relevant caselaw. We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims via every available avenue of appeal. We concluded, based on the technical and legal merits of the Company’s tax positions, that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal. In addition, we considered a number of alternative transfer pricing methodologies, including the methodology asserted by the IRS and affirmed in the Opinions (“Tax Court Methodology”), that could be applied by the courts upon final resolution of the litigation. Based on the required probability analysis, we determined the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a result of this analysis, we recorded a tax reserve of $438 million during the year ended December 31, 2020 related to the application of the resulting methodologies as well as the different tax treatment applicable to dividends originally paid to the U.S. parent company by its foreign licensees, in reliance upon the Closing Agreement, that would be recharacterized as royalties in accordance with the Opinions and the Company’s analysis. The Company’s conclusion that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal is unchanged as of December 31, 2023. However, we updated our calculation of the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a result of the application of the required probability analysis to these updated calculations and the accrual of interest through the current reporting period, we updated our tax reserve as of December 31, 2023 to $439 million. While the Company strongly disagrees with the IRS’ positions and the portions of the Opinions affirming such positions, it is possible that some portion or all of the adjustment proposed by the IRS and sustained by the Tax Court could ultimately be upheld. In that event, the Company would likely be subject to significant additional liabilities for tax years 2007 through 2009, and potentially also for subsequent years, which could have a material adverse impact on the Company’s financial position, results of operations and cash flows. The Company calculated the potential impact of applying the Tax Court Methodology to reallocate income from foreign licensees potentially covered within the scope of the Opinions, assuming such methodology were to be ultimately upheld by the courts, and the IRS were to decide to apply that methodology to subsequent years, with consent of the federal courts. This impact would include taxes and interest accrued through December 31, 2023 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2023. The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the 2017 Tax Cuts and Jobs Act (“Tax Reform Act”). The Company estimates that the potential aggregate incremental tax and interest liability could be approximately $16 billion as of December 31, 2023. Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. We currently project the continued application of the Tax Court Methodology in future years, assuming similar facts and circumstances as of December 31, 2023, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5%. The Company and the IRS are now in the process of agreeing on the tax impacts of the Opinions. Subsequent to the completion of this process, the Tax Court will render a decision in the case. The Company will have 90 days thereafter to file a notice of appeal to the U.S. Court of Appeals for the Eleventh Circuit. The IRS will then seek to collect, and the Company expects to pay, any additional tax related to the 2007 through 2009 tax years reflected in the Tax Court decision (and interest thereon). The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years, which is included in the above estimate of the potential aggregate incremental tax and interest liability, would be approximately $5.8 billion (including interest accrued through December 31, 2023), plus any additional interest accrued through the time of payment. Some or all of this amount, plus accrued interest, would be refunded if the Company were to prevail on appeal. Risk Management Programs The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company’s risk of catastrophic loss. Our reserves for the Company’s self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our claims history. Our self-insurance reserves totaled $197 million and $199 million as of December 31, 2023 and 2022, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS Our Company grants long-term equity awards under its stock-based compensation plans to certain employees of the Company. The Coca-Cola Company 2014 Equity Plan (“2014 Equity Plan”) was approved by shareowners in April 2014. Under the 2014 Equity Plan, a maximum of 500 million shares of our common stock was approved to be issued through the grant of equity awards. The 2014 Equity Plan allows for grants of stock options, performance share units, restricted stock, restricted stock units and other specified award types, including cash awards with performance-based vesting criteria. As of December 31, 2023, there were 284 million shares available to be granted under the 2014 Equity Plan. In addition, there were 3 million shares available for stock option and restricted stock award grants under plans approved by shareowners prior to 2014. Total stock-based compensation expense was $251 million, $361 million and $337 million in 2023, 2022 and 2021, respectively. In 2022, for certain employees who accepted voluntary separation from the Company as a result of the restructuring of our North America operating unit, the Company provided cash payments designed to offset the loss of certain equity awards and serve as a cash supplement to the employees upon the exercise of certain stock options. The stock-based compensation expense in 2022 arising from the estimated cash payments was $5 million and was recorded in the line item other operating charges, and the remaining stock-based compensation expense of $356 million was recorded in the line item selling, general and administrative expenses in our consolidated statement of income. In 2023, the Company recorded stock-based compensation expense of $254 million in the line item selling, general and administrative expenses in our consolidated statement of income. This was partially offset by $3 million related to the revision of management’s estimates arising from the settlement of the estimated cash payments recognized in 2022, which was recorded in the line item other operating charges in our consolidated statement of income. Refer to Note 19 for additional information on the Company’s restructuring and strategic realignment initiatives. All stock-based compensation expense in 2021 was recorded in the line item selling, general and administrative expenses in our consolidated statement of income. The total income tax benefit recognized in our consolidated statements of income related to total stock-based compensation expense was $40 million, $55 million and $60 million in 2023, 2022 and 2021, respectively. As of December 31, 2023, we had $267 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under our plans, which we expect to recognize over a weighted-average period of 1.7 years as stock‑based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards. Stock Option Awards Stock option awards are generally granted with an exercise price equal to the average of the high and low market prices per share of the Company’s stock on the grant date. The fair value of each stock option award is estimated using a Black-Scholes-Merton option-pricing model and is expensed on a straight-line basis over the vesting period, which is generally four years. The weighted-average fair value of stock options granted during the years ended December 31, 2023, 2022 and 2021 and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: Year Ended December 31, 2023 2022 2021 Fair value of stock options on grant date $ 9.84 $ 8.23 $ 5.08 Dividend yield 1 3.0 % 2.8 % 3.3 % Expected volatility 2 17.5 % 18.0 % 18.0 % Risk-free interest rate 3 4.1 % 1.9 % 0.9 % Expected term of stock options 4 6 years 6 years 6 years 1 The dividend yield is the calculated yield on the closing market price per share of the Company’s stock on the grant date. 2 The expected volatility is based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock and other factors. 3 The risk-free interest rate for the period matching the expected term of the stock options is based on the U.S. Treasury yield curve in effect on the grant date. 4 The expected term of the stock options represents the period of time that stock options are expected to be outstanding and is derived by analyzing historical exercise behavior. Stock option awards generally expire 10 years after the grant date. The shares of common stock to be issued and/or sold upon the exercise of stock options are made available from either authorized and unissued common stock or from treasury shares. Since 2007, the Company has issued common stock under its stock-based compensation plans from treasury shares. Stock option activity during the year ended December 31, 2023 was as follows: Shares Weighted-Average Weighted-Average Aggregate Outstanding on January 1, 2023 59 $ 45.93 Granted 3 60.05 Exercised (14) 39.47 Forfeited/expired (1) 55.58 Outstanding on December 31, 2023 47 $ 48.52 4.7 years $ 507 Expected to vest 46 $ 48.38 4.6 years $ 506 Exercisable on December 31, 2023 36 $ 45.55 3.7 years $ 483 The total intrinsic value of the stock options exercised was $268 million, $534 million and $358 million in 2023, 2022 and 2021, respectively. The total number of stock options exercised was 14 million, 22 million and 19 million in 2023, 2022 and 2021, respectively. Performance-Based Share Unit Awards Performance share unit awards require achievement of certain performance criteria, which are predefined by the Talent and Compensation Committee of our Board of Directors at the time of grant. For performance share unit awards granted from 2018 through 2022, the performance criteria were equally weighted among net operating revenues, earnings per share and free cash flow over a predefined performance period of three years. For performance share unit awards granted to executives in 2022, and for performance share unit awards granted to all participants in 2023, the performance criteria were weighted 30% for net operating revenues, 30% for earnings per share, 30% for free cash flow and 10% for environmental sustainability. For purposes of these performance criteria, earnings per share is diluted net income per share; free cash flow is net cash provided by operating activities less purchases of property, plant and equipment; and environmental sustainability is comprised of predefined goals related to the Company’s packaging and water security strategies. These performance criteria are adjusted for certain items, if applicable, which are subject to Audit Committee approval. The purpose of these adjustments is to ensure a consistent year-to-year comparison of the specific performance criteria. Performance share unit awards granted to executives in 2018 through 2022 and performance share unit awards granted to all participants in 2023 include a relative TSR modifier to determine the final number of performance share units earned. The fair value of performance share units that include a TSR modifier is determined using a Monte Carlo valuation model. For these awards, the number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range. The fair value of performance share units that do not include a TSR modifier is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the performance period. The performance share unit awards will generally vest at the end of the respective performance period. During 2021, in addition to granting performance share unit awards with a three-year performance period, the Company granted emerging stronger performance share unit awards with a predefined performance period of two years. The award’s performance criterion was earnings per share, and the award included a relative TSR modifier. Earnings per share for these purposes was diluted net income per share adjusted for certain items, which were approved by the Audit Committee. The purpose of these adjustments was to ensure a consistent year-to-year comparison of the performance criterion. These performance share unit awards generally vested at the end of the two-year performance period. For performance share unit awards, in the event the certified results equal the predefined performance criteria, the number of performance share units earned will be equal to the target award. In the event the certified results exceed the predefined performance criteria, additional performance share units up to the maximum award will be earned. In the event the certified results fall below the predefined performance criteria but are at or above the minimum threshold, a reduced number of performance share units will be earned. If the certified results fall below the minimum threshold, no performance share units will be earned. Performance share unit awards do not entitle participants to vote or receive dividends until the performance share units are settled in stock. In the reporting period it becomes probable that the minimum performance threshold specified in the performance share unit award will be achieved, we recognize compensation expense for the proportionate share of the total fair value of the performance share units related to the vesting period that has already lapsed for the performance share units expected to vest. The remaining fair value of the performance share units expected to vest is expensed on a straight-line basis over the remainder of the vesting period. In the event the Company determines it is no longer probable that the minimum performance threshold specified in the award will be achieved, we reverse all previously recognized compensation expense in the reporting period such a determination is made. Performance share units earned are generally settled in stock, except for certain circumstances such as death or disability, in which case beneficiaries or employees are provided cash payments. As of December 31, 2023, nonvested performance share units of approximately 1,567,000 and 1,287,000 were outstanding for the 2022-2024 and 2023-2025 performance periods, respectively, based on the target award amounts. The following table summarizes information about outstanding nonvested performance share units based on the target award levels: Performance Share Units Weighted-Average Nonvested on January 1, 2023 3,706 $ 52.94 Granted 1,323 56.63 Vested 1 (1,831) 46.65 Forfeited (344) 54.65 Nonvested on December 31, 2023 2 2,854 $ 58.48 1 Represents the target level of performance share units vested as of December 31, 2023 for the 2021-2023 performance period. Upon certification in February 2024 of the financial results for the performance periods, the final number of shares earned will be determined and released. 2 The outstanding nonvested performance share units as of December 31, 2023 at the threshold award and maximum award levels were approximately 1,139,000 and 6,781,000, respectively. The weighted-average grant date fair value of performance share unit awards granted in 2023, 2022 and 2021 was $56.63, $59.61 and $47.04, respectively. The following table summarizes information about vested performance share units based on the certified award level: 2020-2022 Annual Award 2021-2022 Performance Share Units Weighted- Performance Share Units Weighted- Certified 3,029 $ 57.00 1,099 $ 48.36 Released during 2023 (3,011) 57.43 (1,091) 48.36 Forfeited during 2023 (18) 57.00 (8) 48.36 The total intrinsic value of performance share units that were released was $244 million, $125 million and $237 million in 2023, 2022 and 2021, respectively. Time-Based Restricted Stock and Restricted Stock Unit Awards Time-based restricted stock and restricted stock unit awards granted under the 2014 Equity Plan do not entitle recipients to vote or receive dividends during the vesting period and will be forfeited in the event of the recipient’s termination of employment, except for certain circumstances such as death or disability. The fair value of restricted stock and restricted stock units is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period. The fair value of the restricted stock and restricted stock units expected to vest and be released is expensed on a straight-line basis over the vesting period. The following table summarizes information about outstanding nonvested time-based restricted stock and restricted stock units: Restricted Stock and Restricted Stock Units Weighted-Average Nonvested on January 1, 2023 3,030 $ 52.35 Granted 1,645 54.70 Vested and released (865) 54.66 Forfeited (317) 52.43 Nonvested on December 31, 2023 3,493 $ 52.91 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Our Company sponsors a qualified pension plan covering substantially all U.S. employees as well as unfunded nonqualified pension plans covering certain U.S. employees. Our Company also sponsors postretirement health care and life insurance benefit plans covering certain U.S. employees. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement benefit arrangements outside the United States. As of December 31, 2023, the U.S. qualified pension plan represented 63% and 56% of the Company’s consolidated projected benefit obligation and pension plan assets, respectively. Obligations and Funded Status The following table sets forth the changes in the benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2023 2022 Benefit obligation at beginning of year 1 $ 6,376 $ 8,580 $ 495 $ 696 Service cost 94 93 4 7 Interest cost 322 232 27 17 Participant contributions 5 5 9 11 Foreign currency exchange rate changes 27 (152) (4) (4) Amendments — 9 1 — Net actuarial loss (gain) 2 375 (1,891) 14 (175) Benefits paid (369) (500) (62) (57) Divestitures — (2) — — Settlements (287) 3 (26) (187) 4 — Curtailments — (1) — — Special termination benefits 1 1 — — Other — 28 — — Benefit obligation at end of year 1 $ 6,544 $ 6,376 $ 297 $ 495 Fair value of plan assets at beginning of year $ 7,158 $ 8,905 $ 373 $ 419 Actual return on plan assets 537 (1,101) 17 (55) Employer contributions 44 33 — — Participant contributions 5 5 7 9 Foreign currency exchange rate changes 76 (258) — — Benefits paid (300) (427) (34) — Settlements (260) 3 (26) (187) 4 — Other — 27 — — Fair value of plan assets at end of year $ 7,260 $ 7,158 $ 176 $ 373 Net asset (liability) recognized $ 716 $ 782 $ (121) $ (122) 1 For pension plans, the benefit obligation is the projected benefit obligation. For other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $6,463 million and $6,307 million as of December 31, 2023 and 2022, respectively. 2 A change in the weighted-average discount rate assumption was the primary driver of net actuarial loss (gain) during 2023 and 2022. For our U.S. qualified pension plan, a decrease in the discount rate resulted in an actuarial loss of $129 million during 2023, and an increase in the discount rate resulted in an actuarial gain of $1,231 million during 2022. Additional drivers of net actuarial loss (gain) included other assumption updates and plan experience. 3 Settlements primarily related to the U.S. qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees. The U.S. qualified pension plan made $259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $76 million settlement charge related to the acceleration of existing unrecognized losses. 4 In 2023, the Company settled its U.S. post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents. The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits. Pursuant to the settlement, the Company transferred $187 million of plan assets and liabilities to an insurer and recognized a $14 million net settlement credit related to the acceleration of existing unrecognized gains. Pension and other postretirement benefit plan amounts recognized in our consolidated balance sheets were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Other noncurrent assets $ 1,543 $ 1,558 $ — $ 44 Accounts payable and accrued expenses (67) (70) (4) (17) Other noncurrent liabilities (760) (706) (117) (149) Net asset (liability) recognized $ 716 $ 782 $ (121) $ (122) Certain of our pension plans have a projected benefit obligation in excess of the fair value of plan assets. For these plans, the projected benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Projected benefit obligation $ 5,270 $ 972 Fair value of plan assets 4,443 197 Certain of our pension plans have an accumulated benefit obligation in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Accumulated benefit obligation $ 5,165 $ 880 Fair value of plan assets 4,379 138 Certain of our other postretirement benefit plans have an accumulated postretirement benefit obligation in excess of the fair value of plan assets. For these plans, the accumulated postretirement benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Accumulated postretirement benefit obligation $ 297 $ 166 Fair value of plan assets 176 — Pension Plan Assets The following table presents total assets by asset class for our U.S. and non-U.S. pension plans (in millions): U.S. Pension Plans Non-U.S. Pension Plans December 31, 2023 2022 2023 2022 Cash and cash equivalents $ 203 $ 473 $ 172 $ 162 Equity securities: U.S.-based companies 457 509 721 679 International-based companies 208 285 713 654 Fixed-income securities: Government bonds 848 793 538 445 Corporate bonds and debt securities 426 384 153 115 Mutual, pooled and commingled funds 1 243 304 535 463 Hedge funds/limited partnerships 1,038 915 19 21 Real estate 367 417 9 7 Derivative financial instruments — — 33 (14) Other 266 256 311 290 Total pension plan assets 2 $ 4,056 $ 4,336 $ 3,204 $ 2,822 1 Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. 2 Fair value disclosures related to our pension plan assets are included in Note 17. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension plan assets. Investment Strategy for U.S. Pension Plan The Company utilizes the s ervices of investment managers to actively manage the assets of our U.S. qualified pension plan. We have established asset allocation targets and investment guidelines with each investment manager. Our asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the plan. Selection of the targeted asset allocation for U.S. pension plan assets is based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. Our target allocation is a mix of 18% equity securities, 47% fixed-income securities and 35% alternative investments. We believe this target allocation will enable us to achieve the following long-term investment objectives: (1) optimize the long-term return on plan assets at an acceptable level of risk; (2) maintain a broad diversification across asset classes and among investment managers; and (3) maintain careful control of the risk level within each asset class. The investment guidelines that have been established with each investment manager provide parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements and credit quality standards, where applicable. Investment managers agree to obtain written approval for deviations from stated investment style or guidelines. As of December 31, 2023, no investment manager was responsible for more than 28% of total U.S. pension plan assets. Our target allocation of 18% equity securities is composed of 81% global equities, 11% emerging market equities and 8% domestic small-cap and mid-cap equities. Optimal returns through our investments in global equities are achieved through security selection as well as country and sector diversification. As of December 31, 2023, investments in our common stock accounted for 9% of total global equities and 5% of total U.S. pension plan assets. Our investments in global equities are intended to provide diversified exposure to both U.S. and non-U.S. equity markets. Our investments in both emerging market equities and domestic small-cap and mid-cap equities may experience large swings in their market value. Our investments in these asset classes are selected based on capital appreciation potential. Our target allocation of 47% fixed-income securities is composed of 62% long-duration bonds and 38% with multi-strategy alternative credit managers. Long-duration bonds are intended to provide a stable rate of return through investments in high-quality publicly traded debt securities. Our investments in long-duration bonds are diversified in order to mitigate duration and credit exposure. Multi-strategy alternative credit managers invest in a combination of high-yield bonds, bank loans, structured credit and emerging market debt. These investments are in lower-rated and non-rated debt securities, which generally produce higher returns compared to long-duration bonds and also help diversify our overall fixed-income portfolio. Our target allocation for alternative investments is 35%. These alternative investments include hedge funds, reinsurance, private equity limited partnerships, leveraged buyout funds, international venture capital partnerships and real estate. The objective of investing in alternative investments is to provide a higher rate of return than that which is typically available from publicly traded equity securities. Alternative investments are inherently illiquid and require a long-term perspective in evaluating investment performance. Investment Strategy for Non-U.S. Pension Plans The long-term target allocation for 66% of our international subsidiaries’ pension plan assets, primarily certain of our European and Canadian plans, is 60% equity securities, 29% fixed-income securities and 11% other investments. The actual allocation for the remaining 34% of the Company’s international subsidiaries’ pension plan assets consisted of 40% mutual, pooled and commingled funds; 23% fixed-income securities; 2% equity securities; and 35% other investments as of December 31, 2023. The investment strategies for our international subsidiaries’ pension plans vary greatly, and in some instances are influenced by local law. None of our pension plans outside the United States is individually significant for separate disclosure. Other Postretirement Benefit Plan Assets Plan assets associated with other postretirement benefits primarily represent funding of one of the U.S. postretirement health care benefit plans through a Voluntary Employee Beneficiary Association (“VEBA”), a tax-qualified trust. The VEBA assets are primarily invested in liquid assets due to the level and timing of expected future benefit payments. The following table presents total assets by asset class for our other postretirement benefit plans (in millions): December 31, 2023 2022 Cash and cash equivalents $ 10 $ 43 Equity securities: U.S.-based companies 73 133 International-based companies 4 4 Fixed-income securities: Government bonds 14 12 Corporate bonds and debt securities 7 71 Mutual, pooled and commingled funds 39 86 Hedge funds/limited partnerships 18 14 Real estate 6 6 Other 5 4 Total other postretirement benefit plan assets 1 $ 176 $ 373 1 Fair value disclosures related to our other postretirement benefit plan assets are included in Note 17. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets. Components of Net Periodic Benefit Cost (Income) Net periodic benefit cost or income for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2021 2023 2022 2021 Service cost $ 94 $ 93 $ 97 $ 4 $ 7 $ 9 Interest cost 322 232 183 27 17 15 Expected return on plan assets 1 (475) (558) (606) (14) (16) (17) Amortization of prior service cost 1 — — (3) (3) (2) Amortization of net actuarial loss (gain) 2 96 109 146 (5) — 4 Net periodic benefit cost (income) 38 (124) (180) 9 5 9 Settlement charges (credits) 81 3 (1) 117 4 (14) 5 — — Curtailment credits — (1) (1) — — (1) Special termination benefits 1 1 3 — — — Other — 1 — — — — Total cost (income) $ 120 $ (124) $ (61) $ (5) $ 5 $ 8 1 The Company has elected to use the actual fair value of plan assets as the market-related value of plan assets in the determination of the expected return on plan assets. 2 Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. 3 Settlements primarily related to the U.S. qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees. The U.S. qualified pension plan made $259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $76 million settlement charge related to the acceleration of existing unrecognized losses. 4 Settlement charges were primarily related to our strategic realignment initiatives. Refer to Note 19. 5 In 2023, the Company settled its U.S. post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents. The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits. Pursuant to the settlement, the Company transferred $187 million of plan assets and liabilities to an insurer and recognized a $14 million net settlement credit related to the acceleration of existing unrecognized gains. All of the amounts in the table above, other than service cost, were recorded in the line item other income (loss) — net in our consolidated statements of income. Impact on Accumulated Other Comprehensive Income The following table sets forth the pretax changes in AOCI for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2023 2022 Balance in AOCI at beginning of year $ (1,755) $ (2,125) $ 95 $ (4) Recognized prior service cost (credit) 1 — (3) (3) Recognized net actuarial loss (gain) 177 107 (19) — Prior service cost occurring during the year — (9) (1) — Net actuarial gain (loss) occurring during the year (313) 232 (12) 104 Net foreign currency translation adjustments (16) 40 1 (2) Balance in AOCI at end of year $ (1,906) $ (1,755) $ 61 $ 95 The following table sets forth the pretax amounts in AOCI for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Prior service credit (cost) $ (17) $ (17) $ 20 $ 24 Net actuarial gain (loss) (1,889) (1,738) 41 71 Balance in AOCI at end of year $ (1,906) $ (1,755) $ 61 $ 95 Assumptions Certain weighted-average assumptions used in computing the benefit obligations for our pension and other postretirement benefit plans were as follows: Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Discount rate 5.00 % 5.50 % 6.25 % 6.00 % Interest crediting rate 3.75 % 4.00 % N/A N/A Rate of increase in compensation levels 4.00 % 3.75 % N/A N/A Certain weighted-average assumptions used in computing net periodic benefit cost or income were as follows: Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2021 2023 2022 2021 Discount rate 5.50 % 3.00 % 2.50 % 6.00 % 3.25 % 2.75 % Interest crediting rate 4.00 % 3.00 % 3.00 % N/A N/A N/A Rate of increase in compensation levels 3.75 % 3.75 % 3.75 % N/A N/A N/A Expected long-term rate of return on plan assets 6.75 % 7.00 % 7.25 % 3.75 % 4.00 % 4.25 % The discount rate assumption used to account for pension and other postretirement benefit plans reflects the rate at which the benefit obligations could be effectively settled. The discount rate for U.S. and certain non-U.S. plans is determined using a matching technique whereby the rates of a yield curve, developed from high-quality debt securities, are applied to projected benefit cash flows to determine the appropriate effective discount rate. For other non-U.S. plans, we base the discount rate assumption on comparable indices within each of the countries. The Company measures the service cost and interest cost components of net periodic benefit cost or income for pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans’ projected benefit cash flows. The rate of compensation increase assumption is determined by the Company based upon annual reviews. The cash balance interest crediting rate for the U.S. qualified pension plan is based on the yield on six-month U.S. Treasury bills on the last day of September of the previous plan year, plus 150 basis points, with a minimum interest crediting rate of 3.80% for all active employees and certain former employees. The Company assumes that the ultimate interest crediting rate is 140 basis points lower than the plan’s year-end discount rate and that the current interest crediting rate will converge with the ultimate interest crediting rate after a period of 10 years. The expected long-term rate of return assumption for U.S. pension plan assets is based upon the target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes. We evaluate the expected long-term rate of return assumption on an annual basis. The expected long-term rate of return assumption used in computing 2023 net periodic benefit income for the U.S. pension plans was 6.75%. As of December 31, 2023, the 5-year, 10-year and 15-year annualized return for the U.S. pension plan assets was 6.7%, 6.1% and 8.3%, respectively. The annualized return since inception was 9.9%. The weighted-average assumptions for health care cost trend rates were as follows: December 31, 2023 2022 Health care cost trend rate assumed for next year 8.50 % 8.25 % Rate to which the trend rate is assumed to decline (the ultimate trend rate) 6.00 % 5.50 % Year that the trend rate reaches the ultimate trend rate 2029 2030 We review external data and our own historical trends for health care costs to determine the health care cost trend rate assumptions. The Company’s U.S. postretirement health care benefits are primarily provided through plans with either a capped Company cost or a defined-dollar benefit. This limits the effects of health care inflation on the Company. Cash Flows The expected benefit payments for our pension and other postretirement benefit plans for the 10 years succeeding December 31, 2023 are as follows (in millions): 2024 2025 2026 2027 2028 2029-2033 Benefit payments for pension plans $ 654 $ 615 $ 611 $ 614 $ 489 $ 2,421 Benefit payments for other postretirement 49 29 27 24 23 99 Total $ 703 $ 644 $ 638 $ 638 $ 512 $ 2,520 The Company anticipates making contributions of approximately $47 million to our pension trusts in 2024, all of which will be allocated to our international plans. These contributions are made in accordance with local laws and tax regulations. Defined Contribution Plans Our Company sponsors qualified defined contribution plans covering substantially all U.S. employees. Under the largest U.S. defined contribution plan, we match participants’ contributions up to a maximum of 3.0% to 3.5% of compensation, subject to an IRS limit on compensation. The Company’s expense for the U.S. plans totaled $44 million, $45 million and $32 million in 2023, 2022 and 2021, respectively. We also sponsor defined contribution plans in certain locations outside the United States. The Company’s expense for these plans totaled $82 million in 2023 and $79 million in both 2022 and 2021. Multi-Employer Retirement Plans The Company participates in various multi-employer retirement plans, which are designed to provide benefits to, or on behalf of, employees of multiple employers. These plans are typically established under collective bargaining agreements. Multi-employer retirement plans are generally governed by a board of trustees composed of representatives of both management and labor and are generally funded through employer contributions. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income before income taxes consisted of the following (in millions): Year Ended December 31, 2023 2022 2021 United States $ 2,766 $ 3,452 $ 3,538 International 10,186 8,234 8,887 Total $ 12,952 $ 11,686 $ 12,425 Income taxes consisted of the following (in millions): United States State and Local International Total 2023 Current $ 83 $ 129 $ 2,039 $ 2,251 Deferred (135) (78) 211 (2) 2022 Current $ 468 $ 118 $ 1,651 $ 2,237 Deferred (121) (4) 3 (122) 2021 Current $ 243 $ 106 $ 1,378 $ 1,727 Deferred 229 (10) 675 1 894 1 Includes net tax expense of $195 million related to changes in tax laws in certain foreign jurisdictions. We made income tax payments of $2,580 million, $2,403 million and $2,168 million in 2023, 2022 and 2021, respectively, which included $723 million, $385 million, and $385 million, respectively, of the one-time transition tax required by the Tax Reform Act. Our effective tax rate reflects the tax benefits of having significant operations outside the United States, which are generally taxed at rates lower than the statutory U.S. federal tax rate. As a result of employment actions and capital investments made by the Company, certain tax jurisdictions provide income tax incentive grants, including Brazil, Costa Rica, Singapore and Eswatini. The terms of these grants expire from 2025 to 2036. We anticipate that we will be able to extend or renew the grants in these locations. Tax incentive grants favorably impacted our income tax expense by $332 million, $406 million and $381 million for the years ended December 31, 2023, 2022 and 2021, respectively. In addition, our effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method. A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % State and local income taxes — net of federal benefit 1.1 1.4 1.1 Earnings in jurisdictions taxed at rates different from the statutory U.S. (0.3) (0.6) 2.3 2 Equity income or loss (2.1) (2.7) (2.0) Excess tax benefits on stock-based compensation (0.3) (0.7) (0.5) Other — net (2.0) 1 (0.3) (0.8) 3 Effective tax rate 17.4 % 18.1 % 21.1 % 1 Includes net tax benefit of $118 million (or a 0.9% impact on our effective tax rate) related to domestic provision to return adjustments, as well as for various discrete tax items. Also includes a tax benefit of $88 million (or a 0.7% impact on our effective tax rate) associated with the change in the Company’s indefinite reinvestment assertion for our Philippines and Bangladesh bottling operations. 2 Includes net tax charges of $375 million (or a 3.0% impact on our effective tax rate) related to changes in tax laws in certain foreign jurisdictions, amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other discrete items. 3 Includes a tax benefit of $14 million (or a 1.5% impact on our effective tax rate) associated with the $834 million gain recorded upon the acquisition of the remaining ownership interest in BodyArmor. Refer to Note 2. As of December 31, 2023, we have not recorded incremental income taxes for additional outside basis differences of $8.5 billion in our investments in foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any additional outside basis differences in these entities is not practicable. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Reform Act require the Company to include in its U.S. income tax return each foreign subsidiary’s earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. An accounting policy election is available to either account for the tax effects of GILTI in the period that is subject to such taxes or to provide deferred taxes for book and tax basis differences that upon reversal may be subject to such taxes. We have elected to account for the tax effects of these provisions in the period that is subject to such tax and the impact is reflected in our full year provision. The Company and its subsidiaries file income tax returns in all applicable jurisdictions, including the U.S. federal jurisdiction, U.S. state jurisdictions and foreign jurisdictions. U.S. tax authorities have completed their federal income tax examinations for all years prior to 2007. With respect to U.S. state jurisdictions and foreign jurisdictions, with limited exceptions, the Company and its subsidiaries are no longer subject to income tax audits for years prior to 2007. For U.S. federal and state tax purposes, the net operating losses and tax credit carryovers that were acquired in connection with our acquisition of Coca‑Cola Enterprises Inc.’s former North America business and that were generated from 1990 through 2010 are subject to adjustments until the year in which they are utilized is no longer subject to examination. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for in accordance with the applicable accounting guidance. On November 18, 2020, the Tax Court issued the Opinion regarding the Company’s 2015 litigation with the IRS involving transfer pricing tax adjustments in which the court predominantly sided with the IRS. On November 8, 2023, the Tax Court issued a supplemental opinion, siding with the IRS in concluding both that the blocked-income regulations apply to the Company’s operations and that the Tax Court opinion in 3M Co. & Subs. v. Commissioner (February 9, 2023) controlled as to the validity of those regulations. The Company strongly disagrees with the Opinions and intends to vigorously defend its position. Refer to Note 12. As of December 31, 2023, the gross amount of unrecognized tax benefits was $929 million. If the Company were to prevail on all uncertain tax positions, the net effect would be a benefit of $632 million, exclusive of any benefits related to interest and penalties. The remaining $297 million primarily represents tax benefits that would be received in different tax jurisdictions in the event the Company did not prevail on all uncertain tax positions. A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance of unrecognized tax benefits at beginning of year $ 926 $ 906 $ 915 Increase related to prior period tax positions 2 6 9 Decrease related to prior period tax positions (25) — (50) Increase related to current period tax positions 32 38 37 Decrease related to settlements with taxing authorities — (2) (4) Decrease due to lapse of the applicable statute of limitations (2) — — Effect of foreign currency translation (4) (22) (1) Balance of unrecognized tax benefits at end of year $ 929 $ 926 $ 906 The Company recognizes interest and penalties related to unrecognized tax benefits in the line item income taxes in our consolidated statement of income. The Company had $544 million, $496 million and $453 million in interest and penalties related to unrecognized tax benefits accrued as of December 31, 2023, 2022 and 2021, respectively. Of these amounts, expense of $48 million, $43 million and $62 million was recognized in 2023, 2022 and 2021, respectively. If the Company were to prevail on all uncertain tax positions, the reversal of this accrual would be a benefit to the Company’s effective tax rate. It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect any changes will have a significant impact on our consolidated statement of income or consolidated balance sheet. These changes may be the result of settlements of ongoing audits, statute of limitations expiring or final settlements in transfer pricing matters that are the subject of litigation. Currently, an estimate of the range of the reasonably possible outcomes cannot be made. The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consisted of the following (in millions): December 31, 2023 2022 Deferred tax assets: Property, plant and equipment $ 25 $ 40 Trademarks and other intangible assets 1,414 1,617 Equity method investments (including net foreign currency translation adjustments) 239 366 Derivative financial instruments 156 207 Other liabilities 1,709 1,503 Benefit plans 554 522 Net operating loss carryforwards 273 248 Other 445 530 Gross deferred tax assets 4,815 5,033 Valuation allowances (396) (424) Total deferred tax assets $ 4,419 $ 4,609 Deferred tax liabilities: Property, plant and equipment $ (748) $ (741) Trademarks and other intangible assets (1,917) (1,843) Equity method investments (including net foreign currency translation adjustments) (1,633) (1,632) Derivative financial instruments (282) (488) Other liabilities (330) (372) Benefit plans (428) (490) Other (159) (211) Total deferred tax liabilities $ (5,497) $ (5,777) Net deferred tax assets (liabilities) $ (1,078) $ (1,168) As of December 31, 2023 and 2022, we had net deferred tax assets of $273 million and $398 million, respectively, located in countries outside the United States. As of December 31, 2023, we had $1,705 million of loss carryforwards available to reduce future taxable income. Loss carryforwards of $383 million must be utilized within the next five years, and the remainder can be utilized over a period greater than five years. An analysis of our deferred tax asset valuation allowances is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance at beginning of year $ 424 $ 401 $ 406 Additions 28 47 25 Deductions (56) (24) (30) Balance at end of year $ 396 $ 424 $ 401 The Company’s deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards and foreign tax credit carryforwards from operations in various jurisdictions and basis differences in certain equity investments. Current evidence does not suggest that we will realize sufficient taxable income of the appropriate character within the carryforward period to allow us to realize these deferred tax benefits. If we were to identify and implement tax planning strategies to recover these deferred tax assets or generate sufficient income of the appropriate character in these jurisdictions in the future, it could lead to the reversal of these valuation allowances and a reduction of income tax expense. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet. In 2023, the Company recognized a net decrease of $28 million in its valuation allowances, primarily due to net decreases in the deferred tax assets and related valuation allowances on a certain equity method investment, certain excess foreign tax credit carryforwards and the changes in net operating losses in the normal course of business. In 2022, the Company recognized a net increase of $23 million in its valuation allowances. The increase was primarily due to significant negative evidence on the utilization of excess foreign tax credits generated in the current year. The increase was also due to net increases in the deferred tax assets and related valuation allowances on certain equity method investments and the changes in net operating losses in the normal course of business. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet as a component of The Coca-Cola Company’s shareowners’ equity, which also includes our proportionate share of equity method investees’ AOCI. OCI attributable to noncontrolling interests is allocated to, and included in, our consolidated balance sheet as part of the line item equity attributable to noncontrolling interests. AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions): December 31, 2023 2022 Net foreign currency translation adjustments $ (12,726) $ (13,609) Accumulated net gains (losses) on derivatives (154) 24 Unrealized net gains (losses) on available-for-sale debt securities (1) (25) Adjustments to pension and other postretirement benefit liabilities (1,394) (1,285) Accumulated other comprehensive income (loss) $ (14,275) $ (14,895) The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Year Ended December 31, 2023 Shareowners of Noncontrolling Total Consolidated net income $ 10,714 $ (11) $ 10,703 Other comprehensive income: Net foreign currency translation adjustments 883 (147) 736 Net gains (losses) on derivatives 1 (178) — (178) Net change in unrealized gains (losses) on available-for-sale debt securities 2 24 — 24 Net change in pension and other postretirement benefit liabilities 3 (109) — (109) Total comprehensive income $ 11,334 $ (158) $ 11,176 1 Refer to Note 5 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. 3 Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities. The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions): Before-Tax Amount Income Tax After-Tax Amount 2023 Foreign currency translation adjustments: Translation adjustments arising during the year $ 366 $ (131) $ 235 Reclassification adjustments recognized in net income 223 — 223 Gains (losses) on intra-entity transactions that are of a long-term investment nature 712 — 712 Gains (losses) on net investment hedges arising during the year 1 (382) 95 (287) Net foreign currency translation adjustments $ 919 $ (36) $ 883 Derivatives: Gains (losses) arising during the year $ (194) $ 23 $ (171) Reclassification adjustments recognized in net income (10) 3 (7) Net gains (losses) on derivatives 1 $ (204) $ 26 $ (178) Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ 28 $ (10) $ 18 Reclassification adjustments recognized in net income 7 (1) 6 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 35 $ (11) $ 24 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ (314) $ 80 $ (234) Reclassification adjustments recognized in net income 157 (32) 125 Net change in pension and other postretirement benefit liabilities 3 $ (157) $ 48 $ (109) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 593 $ 27 $ 620 2022 Foreign currency translation adjustments: Translation adjustments arising during the year $ (125) $ (226) $ (351) Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,419) — (1,419) Gains (losses) on net investment hedges arising during the year 1 741 (185) 556 Net foreign currency translation adjustments $ (603) $ (411) $ (1,014) Derivatives: Gains (losses) arising during the year $ 165 $ (40) $ 125 Reclassification adjustments recognized in net income (161) 40 (121) Net gains (losses) on derivatives 1 $ 4 $ — $ 4 Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ (69) $ 4 $ (65) Reclassification adjustments recognized in net income 131 (29) 102 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 62 $ (25) $ 37 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ 420 $ (90) $ 330 Reclassification adjustments recognized in net income 104 (26) 78 Net change in pension and other postretirement benefit liabilities 3 $ 524 $ (116) $ 408 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (13) $ (552) $ (565) Before-Tax Amount Income Tax After-Tax Amount 2021 Foreign currency translation adjustments: Translation adjustments arising during the year $ 263 $ 19 $ 282 Reclassification adjustments recognized in net income 257 — 257 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,798) — (1,798) Gains (losses) on net investment hedges arising during the year 1 918 (230) 688 Reclassification adjustments for net investment hedges recognized in net income 4 — 4 Net foreign currency translation adjustments $ (356) $ (211) $ (567) Derivatives: Gains (losses) arising during the year $ 160 $ (41) $ 119 Reclassification adjustments recognized in net income 124 (29) 95 Net gains (losses) on derivatives 1 $ 284 $ (70) $ 214 Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ (141) $ 48 $ (93) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (137) $ 47 $ (90) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ 653 $ (138) $ 515 Reclassification adjustments recognized in net income 265 (66) 199 Net change in pension and other postretirement benefit liabilities 3 $ 918 $ (204) $ 714 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 709 $ (438) $ 271 1 Refer to Note 5 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. 3 Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities. The following table presents the reclassifications from AOCI into income recorded during the year ended December 31, 2023 (in millions): Description of AOCI Component Financial Statement Line Item Impacted Amount Reclassified from AOCI Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 223 Income before income taxes 223 Income taxes — Consolidated net income $ 223 Derivatives: Foreign currency contracts Net operating revenues $ 3 Foreign currency contracts Other income (loss) — net (17) Foreign currency contracts Interest expense 4 Income before income taxes (10) Income taxes 3 Consolidated net income $ (7) Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 7 Income before income taxes 7 Income taxes (1) Consolidated net income $ 6 Pension and other postretirement benefit liabilities: Divestitures, deconsolidations and other 2 Other income (loss) — net $ 1 Settlement charges (credits) Other income (loss) — net 67 Recognized net actuarial loss (gain) Other income (loss) — net 91 Recognized prior service cost (credit) Other income (loss) — net (2) Income before income taxes 157 Income taxes (32) Consolidated net income $ 125 1 Related to the refranchising of our bottling operations in Vietnam and the sale of our ownership interest in our equity method investees in Pakistan and Indonesia. Refer to Note 2. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Recurring Fair Value Measurements In accordance with U.S. GAAP, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity securities with readily determinable fair values, debt securities classified as trading or available-for-sale, derivative financial instruments and our contingent consideration liability. Additionally, the Company adjusts the carrying value of certain long-term debt as a result of the Company’s fair value hedging strategy. Investments in Debt and Equity Securities The fair values of our investments in debt and equity securities using quoted market prices from daily exchange traded markets are based on the closing price as of the balance sheet date and are classified as Level 1. The fair values of our investments in debt and equity securities classified as Level 2 are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Inputs into these valuation techniques include actual trade data, benchmark yields, broker/dealer quotes and other similar data. These inputs are obtained from quoted market prices, independent pricing vendors or other sources. Derivative Financial Instruments The fair values of our futures contracts are primarily determined using quoted contract prices on futures exchange markets. The fair values of these instruments are based on the closing contract prices as of the balance sheet date and are classified as Level 1. The fair values of our derivative instruments other than futures are determined using standard valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments other than futures include the applicable exchange rates, forward rates, interest rates, discount rates and commodity prices. The standard valuation model for options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility specific to options is based on quoted rates from financial institutions. Included in the fair values of derivative instruments is an adjustment for nonperformance risk. The adjustment is based on current credit default swap (“CDS”) rates applied to each contract, by counterparty. We use our counterparty’s CDS rate when we are in an asset position and our own CDS rate when we are in a liability position. The adjustment for nonperformance risk did not have a significant impact on the estimated fair values of our derivative instruments. The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2023 Level 1 Level 2 Level 3 Other 3 Netting Adjustment 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,727 $ 188 $ 6 $ 85 $ — $ 2,006 Debt securities 1 — 1,172 3 — — 1,175 Derivatives 2 — 275 — — (222) 6 53 8 Total assets $ 1,727 $ 1,635 $ 9 $ 85 $ (222) $ 3,234 Liabilities: Contingent consideration liability $ — $ — $ 3,017 5 $ — $ — $ 3,017 Derivatives 2 3 1,445 — — (1,256) 7 192 8 Total liabilities $ 3 $ 1,445 $ 3,017 $ — $ (1,256) $ 3,209 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 5 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5. 5 Represents the fair value of the remaining milestone payment related to our acquisition of fairlife, LLC (“fairlife”) in 2020, which is contingent on fairlife achieving certain financial targets through 2024 and, if achieved, is payable in 2025. This milestone payment is based on agreed-upon formulas related to fairlife’s operating results, the resulting value of which is not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made. The Company made a milestone payment of $275 million during 2023. 6 The Company is obligated to return $4 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $1,039 million in cash collateral it has netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $53 million in the line item other noncurrent assets other noncurrent liabilities December 31, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,801 $ 169 $ 15 $ 85 $ — $ 2,070 Debt securities 1 — 975 8 — — 983 Derivatives 2 2 239 — — (227) 6 14 8 Total assets $ 1,803 $ 1,383 $ 23 $ 85 $ (227) $ 3,067 Liabilities: Contingent consideration liability $ — $ — $ 1,590 5 $ — $ — $ 1,590 Derivatives 2 4 1,962 — — (1,678) 7 288 8 Total liabilities $ 4 $ 1,962 $ 1,590 $ — $ (1,678) $ 1,878 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 5 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made. 6 The Company was not obligated to return any cash collateral it had netted against its derivative position. 7 The Company had the right to reclaim $1,447 million in cash collateral it had netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $14 million in the line item other noncurrent assets other noncurrent liabilities Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the contingent consideration liability, were not significant for the years ended December 31, 2023 and 2022. The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the years ended December 31, 2023 and 2022. Nonrecurring Fair Value Measurements In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis as required by U.S. GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges or as a result of observable changes in equity securities using the measurement alternative. The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions): Gains (Losses) Year Ended December 31, 2023 2022 Impairment of property, plant and equipment $ (46) 1 $ — Other-than-temporary impairment charges (39) 2 (96) 3 Impairment of intangible assets — (57) 4 Valuation of shares in equity method investee — (24) 5 Total $ (85) $ (177) 1 The Company recorded an asset impairment charge of $25 million during the year ended December 31, 2023 related to the discontinuation of certain manufacturing operations in Asia Pacific. Additionally, the Company recorded an asset impairment charge of $21 million during the year ended December 31, 2023 related to the restructuring of our manufacturing operations in the United States. These charges, which were calculated based on Level 3 inputs, were primarily driven by management’s best estimate of the potential proceeds from the disposal of the related assets. 2 The Company recorded an other-than-temporary impairment charge of $39 million during the year ended December 31, 2023 related to an equity method investee in Latin America. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. 3 The Company recorded an other-than-temporary impairment charge of $96 million during the year ended December 31, 2022 related to an equity method investee in Russia. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. 4 During the year ended December 31, 2022, the Company recorded an impairment charge of $57 million related to a trademark in Asia Pacific, which was primarily driven by a change in brand strategy resulting in revised projections of future operating results for the trademark. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. 5 During the year ended December 31, 2022, we recognized a net loss of $24 million on assets measured at fair value on a nonrecurring basis. The net loss was recorded as a result of an equity method investee issuing additional shares of its stock. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment. This net loss was determined using Level 2 inputs and primarily resulted from the recognition of cumulative translation losses. Fair Value Measurements for Pension and Other Postretirement Benefit Plan Assets The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheet but is also applied to certain other assets that impact our consolidated financial statements. For example, our Company sponsors a number of pension and other postretirement benefit plans. Assets contributed to these plans by the Company become the property of the individual plans. Even though the Company no longer has control over these assets, our consolidated financial statements are impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company’s future net periodic benefit cost or income as well as amounts recognized in our consolidated balance sheet. Refer to Note 14. The Company uses the fair value hierarchy to measure the fair value of assets held by our pension and other postretirement benefit plans. Pension Plan Assets The following table summarizes the levels within the fair value hierarchy for our pension plan assets (in millions): December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Other 1 Total Level 1 Level 2 Level 3 Other 1 Total Cash and cash equivalents $ 163 $ 212 $ — $ — $ 375 $ 146 $ 489 $ — $ — $ 635 Equity securities: U.S.-based companies 1,148 — 30 — 1,178 1,157 7 24 — 1,188 International-based companies 904 15 2 — 921 920 16 3 — 939 Fixed-income securities: Government bonds 107 1,279 — — 1,386 91 1,147 — — 1,238 Corporate bonds and debt — 552 27 — 579 — 469 30 — 499 Mutual, pooled and commingled 12 257 — 509 4 778 35 202 — 530 4 767 Hedge funds/limited — — — 1,057 5 1,057 — — — 936 5 936 Real estate — — — 376 6 376 — — — 424 6 424 Derivative financial instruments — 33 2 — — 33 — (14) 2 — — (14) Other — — 323 3 254 7 577 — — 300 3 246 7 546 Total $ 2,334 $ 2,348 $ 382 $ 2,196 $ 7,260 $ 2,349 $ 2,316 $ 357 $ 2,136 $ 7,158 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 14. 2 This class of assets includes investments in interest rate contracts, credit contracts and foreign exchange contracts. 3 Includes purchased annuity insurance contracts. 4 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developing and emerging markets. There are no liquidity restrictions on these investments. 5 This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to semiannually, with a redemption notice period of up to one year and/or initial lock-up periods of up to three years, and private equity funds that are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed. 6 This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation and can be subject to redemption restrictions, ranging from quarterly to semiannually, with a redemption notice period of up to 90 days. 7 Primarily includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semiannual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans (in millions): Equity Fixed-Income Securities Other 1 Total 2022 Balance at beginning of year $ 27 $ 29 $ 283 $ 339 Actual return on plan assets (12) 1 5 (6) Purchases, sales and settlements — net (1) 4 — 3 Transfers into (out of) Level 3 — net 13 (4) — 9 Other — — 27 27 Net foreign currency translation adjustments — — (15) (15) Balance at end of year $ 27 $ 30 $ 300 $ 357 2023 Balance at beginning of year $ 27 $ 30 $ 300 $ 357 Actual return on plan assets 1 (2) 8 7 Purchases, sales and settlements — net — (1) 7 6 Transfers into (out of) Level 3 — net 4 — — 4 Net foreign currency translation adjustments — — 8 8 Balance at end of year $ 32 $ 27 $ 323 $ 382 1 Includes purchased annuity insurance contracts. Other Postretirement Benefit Plan Assets The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets (in millions): December 31, 2023 December 31, 2022 Level 1 Level 2 Other 1 Total Level 1 Level 2 Other 1 Total Cash and cash equivalents $ 6 $ 4 $ — $ 10 $ 35 $ 8 $ — $ 43 Equity securities: U.S.-based companies 73 — — 73 133 — — 133 International-based companies 4 — — 4 4 — — 4 Fixed-income securities: Government bonds — 14 — 14 — 12 — 12 Corporate bonds and debt securities — 7 — 7 — 71 — 71 Mutual, pooled and commingled funds — 37 2 39 — 83 3 86 Hedge funds/limited partnerships — — 18 18 — — 14 14 Real estate — — 6 6 — — 6 6 Other — — 5 5 — — 4 4 Total $ 83 $ 62 $ 31 $ 176 $ 172 $ 174 $ 27 $ 373 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 14. Other Fair Value Disclosures The carrying values of cash and cash equivalents; short-term investments; trade accounts receivable; accounts payable and accrued expenses; and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial instruments. As of December 31, 2023, the carrying value and fair value of our long-term debt, including the current portion, were $37,507 million and $33,445 million, respectively. As of December 31, 2022, the carrying value and fair value of our long-term debt, including the current portion, were $36,776 million and $32,698 million, respectively. |
SIGNIFICANT OPERATING AND NONOP
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | SIGNIFICANT OPERATING AND NONOPERATING ITEMS Other Operating Charges In 2023, the Company recorded other operating charges of $1,951 million. These charges consisted of $1,702 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $164 million related to the Company’s productivity and reinvestment program and $35 million related to the discontinuation of certain manufacturing operations in Asia Pacific. In addition, other operating charges included $27 million related to the restructuring of our North America operating unit, $15 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $8 million related to tax litigation expense. In 2022, the Company recorded other operating charges of $1,215 million. These charges primarily consisted of $1,000 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $85 million related to the Company’s productivity and reinvestment program and $57 million related to the impairment of a trademark in Asia Pacific. In addition, other operating charges included $38 million related to the restructuring of our North America operating unit and $38 million related to the BodyArmor acquisition, which included various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, net of the reimbursement of distributor termination fees recorded in 2021. These charges were partially offset by a net gain of $6 million due to revisions of management’s estimates related to the Company’s strategic realignment initiatives. In 2021, the Company recorded other operating charges of $846 million. These charges primarily consisted of $369 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $146 million related to the Company’s strategic realignment initiatives, $119 million related to the BodyArmor acquisition, which included various transition and transaction costs, distributor termination fees, employee retention costs and the amortization of noncompete agreements, and $115 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included an impairment charge of $78 million related to a trademark in Europe, charges of $15 million related to tax litigation and a net charge of $4 million related to the restructuring of our manufacturing operations in the United States. Refer to Note 2 for additional information on the acquisition of BodyArmor. Refer to Note 12 for additional information related to the tax litigation. Refer to Note 17 for additional information on fairlife and the impairment charges. Refer to Note 19 for additional information on the Company’s restructuring initiatives. Refer to Note 20 for the impact these charges had on our operating segments and Corporate. Other Nonoperating Items Interest Expense During the year ended December 31, 2021, the Company recorded a charge of $650 million related to the extinguishment of long-term debt, which impacted Corporate. Refer to Note 11. Equity Income (Loss) — Net The Company recorded net charges of $159 million, $34 million and $13 million in equity income (loss) — net during the years ended December 31, 2023, 2022 and 2021, respectively. These amounts represent the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 20 for the impact these charges had on our operating segments and Corporate. Other Income (Loss) — Net During 2023, the Company recognized a net gain of $439 million related to the refranchising of our bottling operations in Vietnam, a net gain of $289 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, and a net gain of $94 million related to the sale of our ownership interests in our equity method investees in Pakistan and Indonesia. Additionally, the Company recorded charges of $67 million due to pension and other postretirement benefit plan settlement charges, an other-than-temporary impairment charge of $39 million related to an equity method investee in Latin America and charges of $32 million related to the restructuring of our manufacturing operations in the United States. During 2022, the Company recorded a net gain of $153 million related to the refranchising of our bottling operations in Cambodia. The Company also recorded a net loss of $371 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, an other-than-temporary impairment charge of $96 million related to an equity method investee in Russia, and a net loss of $24 million as a result of one of our equity method investees issuing additional shares of its stock. During 2021, the Company recognized a gain of $834 million in conjunction with the BodyArmor acquisition; a net gain of $695 million related to the sale of our ownership interest in CCA, an equity method investee; and a net gain of $114 million related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee. Additionally, the Company recognized a net gain of $467 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. The Company also recorded charges of $266 million related to the restructuring of our manufacturing operations in the United States and pension plan settlement charges of $117 million related to our strategic realignment initiatives. Refer to Note 2 for additional information on the acquisition of BodyArmor, the sales of our ownership interests in equity method investees, as well as the refranchising of our bottling operations in Vietnam and Cambodia. Refer to Note 4 for additional information on equity and debt securities. Refer to Note 14 for additional information on pension and other postretirement benefit plan activity. Refer to Note 17 for additional information on the impairment charges and one of our equity method investees issuing additional shares of its stock. Refer to Note 19 for additional information on the Company’s strategic realignment initiatives. Refer to Note 20 for the impact these items had on our operating segments and Corporate. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING Strategic Realignment In August 2020, the Company announced strategic steps to transform our organizational structure in an effort to better enable us to capture growth in the fast-changing marketplace. The Company has transformed into a networked global organization designed to combine the power of scale with the deep knowledge required to win locally. We created new operating units effective January 1, 2021, which are focused on regional and local execution. The operating units sit under our four geographic operating segments and are highly interconnected, with the goal of eliminating duplication of resources and scaling new products more quickly. The operating units work closely with five global marketing category leadership teams to rapidly scale ideas while staying close to the consumer. The global marketing category leadership teams primarily focus on innovation as well as marketing efficiency and effectiveness. The organizational structure also includes a center and a platform services organization. Refer to Note 20 for additional information on our organizational structure. The Company has incurred total pretax expenses of $684 million related to these strategic realignment initiatives since they commenced. These expenses were recorded in the line items other operating charges and other income (loss) — net in our consolidated statements of income. Refer to Note 20 for the impact these expenses had on our operating segments and Corporate. Outside services reported in the table below primarily relate to expenses in connection with legal and consulting activities. The strategic realignment initiatives were substantially complete as of December 31, 2021. The following table summarizes the balance of accrued expenses related to these strategic realignment initiatives (in millions): Severance Pay Outside Services Other Total 2021 Accrued balance at beginning of year $ 181 $ 1 $ 3 $ 185 Costs incurred 224 37 2 263 Payments (265) (35) (3) (303) Noncash and exchange (120) 1 (2) — (122) Accrued balance at end of year $ 20 $ 1 $ 2 $ 23 2022 Accrued balance at beginning of year $ 20 $ 1 $ 2 $ 23 Costs incurred (4) — (2) (6) Payments (15) — — (15) Noncash and exchange 1 — — 1 Accrued balance at end of year $ 2 $ 1 $ — $ 3 2023 Accrued balance at beginning of year $ 2 $ 1 $ — $ 3 Payments (2) — — (2) Noncash and exchange — (1) — (1) Accrued balance at end of year $ — $ — $ — $ — 1 Includes pension settlement charges. Refer to Note 14. North America Operating Unit Restructuring In November 2022, the Company announced a restructuring program for our North America operating unit designed to better align its operating structure with its customers and bottlers. The evolved operating structure will bring together all bottler-related components (franchise leadership, commercial leadership, digital, governance and technical innovation) and will help streamline how we work. The Company has incurred total pretax expenses of $65 million related to this restructuring program since it commenced. These expenses were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 20 for the impact these charges had on our operating segments and Corporate. This restructuring program was substantially complete as of December 31, 2023. The following table summarizes the balance of accrued expenses related to these North America operating unit restructuring initiatives (in millions): Severance Pay Outside Services Other Total 2022 Costs incurred $ 38 $ — $ — $ 38 Payments (1) — — (1) Accrued balance at end of year $ 37 $ — $ — $ 37 2023 Accrued balance at beginning of year $ 37 $ — $ — $ 37 Costs incurred 22 1 4 27 Payments (58) (1) (4) (63) Accrued balance at end of year $ 1 $ — $ — $ 1 Productivity and Reinvestment Program In February 2012, the Company announced a productivity and reinvestment program designed to strengthen our brands and reinvest our resources to drive long-term profitable growth. This program was expanded multiple times, with the last expansion occurring in April 2017. The remaining initiatives included in this program, which are primarily designed to further simplify and standardize our organization, will be completed in 2024. The Company has incurred total pretax expenses of $4,293 million related to our productivity and reinvestment program since it commenced. These expenses were recorded in the line items other operating charges and other income (loss) — net in our consolidated statements of income. Refer to Note 20 for the impact these charges had on our operating segments and Corporate. Outside services reported in the table below primarily include costs associated with outplacement and consulting activities. Other direct costs reported in the table below include, among other items, internal and external costs associated with the development, communication, administration and implementation of these initiatives; accelerated depreciation on certain fixed assets; contract termination fees; and relocation costs. The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts (in millions): Severance Pay Outside Services Other Total 2021 Accrued balance at beginning of year $ 15 $ — $ 2 $ 17 Costs incurred 4 97 14 115 Payments (6) (97) (14) (117) Noncash and exchange (1) — 3 2 Accrued balance at end of year $ 12 $ — $ 5 $ 17 2022 Accrued balance at beginning of year $ 12 $ — $ 5 $ 17 Costs incurred (4) 81 8 85 Payments (2) (81) (11) (94) Noncash and exchange (2) — — (2) Accrued balance at end of year $ 4 $ — $ 2 $ 6 2023 Accrued balance at beginning of year $ 4 $ — $ 2 $ 6 Costs incurred (1) 131 34 164 Payments — (124) (42) (166) Noncash and exchange — (7) 6 (1) Accrued balance at end of year $ 3 $ — $ — $ 3 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Our organizational structure consists of the following operating segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. Our operating structure also includes Corporate, which consists of two components: (1) a center focusing on strategic initiatives, policy, governance and scaling global initiatives, and (2) a platform services organization supporting operating units, global marketing category leadership teams and the center by providing efficient and scaled global services and capabilities, including, but not limited to, transactional work, data management, consumer analytics, digital commerce and social/digital hubs. Segment Products and Services The business of our Company is primarily nonalcoholic beverages. Our geographic operating segments (Europe, Middle East and Africa; Latin America; North America; and Asia Pacific) derive a majority of their revenues from the manufacture and sale of beverage concentrates and syrups and, in some cases, the sale of finished beverages. Our Global Ventures operating segment includes the results of our Costa, innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster. Our Bottling Investments operating segment is composed of our consolidated bottling operations, regardless of the geographic location of the bottler. Our Bottling Investments operating segment also includes equity income from the majority of our equity method investees. Our consolidated bottling operations derive the majority of their revenues from the manufacture and sale of finished beverages. Generally, finished product operations produce higher net operating revenues but lower gross profit margins than concentrate operations. Refer to Note 3. The following table sets forth the percentage of total net operating revenues attributable to concentrate operations and finished product operations: Year Ended December 31, 2023 2022 2021 Concentrate operations 58 % 56 % 56 % Finished product operations 42 44 44 Total 100 % 100 % 100 % Method of Determining Segment Income or Loss Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and interest expense, on a global basis within Corporate. We evaluate operating segment performance based primarily on net operating revenues and operating income (loss). Geographic Data The following table provides information related to our net operating revenues (in millions): Year Ended December 31, 2023 2022 2021 United States $ 16,550 $ 15,413 $ 13,010 International 29,204 27,591 25,645 Net operating revenues $ 45,754 $ 43,004 $ 38,655 The following table provides information related to our property, plant and equipment — net (in millions): Year Ended December 31, 2023 2022 2021 United States $ 3,682 $ 3,494 $ 3,420 International 5,554 6,347 6,500 Property, plant and equipment — net $ 9,236 $ 9,841 $ 9,920 Information about our Company’s operations by operating segment and Corporate is as follows (in millions): Europe, Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated As of and for the Year Ended December 31, 2023 Net operating revenues: Third party $ 7,392 $ 5,830 $ 16,766 $ 4,724 $ 3,064 $ 7,852 $ 126 $ — $ 45,754 Intersegment 686 — 8 731 — 8 — (1,433) — Total net operating revenues 8,078 5,830 16,774 5,455 3,064 7,860 126 (1,433) 45,754 Operating income (loss) 4,202 3,432 4,435 2,040 329 578 (3,705) — 11,311 Interest income — — 47 — 6 — 854 — 907 Interest expense — — — — — — 1,527 — 1,527 Depreciation and amortization 59 48 310 50 128 389 144 — 1,128 Equity income (loss) — net 16 9 — (146) — 1,495 317 — 1,691 Income (loss) before income taxes 4,255 3,404 4,450 1,905 338 2,119 (3,519) — 12,952 Identifiable operating assets 7,117 3,149 25,808 2,428 2 7,607 9,871 2 21,934 — 77,914 Investments 1 389 712 15 71 — 13,639 4,963 — 19,789 Capital expenditures 43 1 412 23 192 843 338 — 1,852 As of and for the Year Ended December 31, 2022 Net operating revenues: Third party $ 6,896 $ 4,910 $ 15,667 $ 4,711 $ 2,843 $ 7,883 $ 94 $ — $ 43,004 Intersegment 627 — 7 734 — 8 — (1,376) — Total net operating revenues 7,523 4,910 15,674 5,445 2,843 7,891 94 (1,376) 43,004 Operating income (loss) 3,958 2,870 3,742 2,303 185 487 (2,636) — 10,909 Interest income — — 29 — 9 — 411 — 449 Interest expense — — — — — — 882 — 882 Depreciation and amortization 63 39 330 58 140 435 195 — 1,260 Equity income (loss) — net 43 7 (1) 9 — 1,184 230 — 1,472 Income (loss) before income taxes 3,952 2,879 3,768 2,320 196 1,743 (3,172) — 11,686 Identifiable operating assets 7,088 2,067 25,760 2,368 3 7,325 10,232 3 19,158 — 73,998 Investments 1 410 629 15 219 — 12,892 4,600 — 18,765 Capital expenditures 50 4 280 22 179 697 252 — 1,484 Year Ended December 31, 2021 Net operating revenues: Third party $ 6,564 $ 4,143 $ 13,184 $ 4,682 $ 2,805 $ 7,194 $ 83 $ — $ 38,655 Intersegment 629 — 6 609 — 9 2 (1,255) — Total net operating revenues 7,193 4,143 13,190 5,291 2,805 7,203 85 (1,255) 38,655 Operating income (loss) 3,735 2,534 3,331 2,325 293 473 (2,383) — 10,308 Interest income — — 40 — 10 — 226 — 276 Interest expense — — — — — — 1,597 — 1,597 Depreciation and amortization 76 39 388 49 135 529 236 — 1,452 Equity income (loss) — net 33 9 22 8 (6) 1,071 301 — 1,438 Income (loss) before income taxes 3,821 2,542 3,140 2,350 310 1,596 (1,334) — 12,425 Capital expenditures 35 2 228 65 285 560 192 — 1,367 1 Principally equity method investments and other investments in bottling companies. 2 Property, plant and equipment — net in India represented 12% of consolidated property, plant and equipment — net as of December 31, 2023. 3 Property, plant and equipment — net in the Philippines represented 10% of consolidated property, plant and equipment — net as of December 31, 2022. As of December 31, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale. Refer to Note 2. During 2023, 2022 and 2021, our operating segments and Corporate were impacted by acquisition and divestiture activities. Refer to Note 2. In 2023, the results of our operating segments and Corporate were impacted by the following items: • Operating income (loss) and income (loss) before income taxes were reduced by $1,702 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 17. • Operating income (loss) and income (loss) before income taxes were reduced by $165 million for Corporate due to the Company’s productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $1 million for North America due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $35 million for Asia Pacific due to the discontinuation of certain manufacturing operations. • Operating income (loss) and income (loss) before income taxes were reduced by $27 million for North America due to the restructuring of our North America operating unit. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes for North America were reduced by $18 million and $50 million, respectively, due to the restructuring of our manufacturing operations in the United States. • Operating income (loss) and income (loss) before income taxes were reduced by $15 million for Corporate related to our acquisition of BodyArmor. Refer to Note 18. • Operating income (loss) and income (loss) before income taxes were reduced by $8 million for Corporate related to tax litigation expense. Refer to Note 12. • Income (loss) before income taxes was increased by $439 million for Corporate due to the refranchising of our bottling operations in Vietnam. Refer to Note 2. • Income (loss) before income taxes was increased by $289 million for Corporate due to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. • Income (loss) before income taxes was increased by $94 million for Corporate related to the sale of our ownership interests in our equity method investees in Indonesia and Pakistan. Refer to Note 2. • Income (loss) before income taxes was reduced by $146 million for Asia Pacific, $7 million for Bottling Investments, $5 million for Latin America and $1 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. • Income (loss) before income taxes was reduced by $67 million for Corporate due to pension and other postretirement benefit plan settlement charges. Refer to Note 14. • Income (loss) before income taxes was reduced by $39 million for Latin America due to an other-than-temporary impairment charge related to an equity method investee . Refer to Note 17. In 2022, the results of our operating segments and Corporate were impacted by the following items: • Operating income (loss) and income (loss) before income taxes were increased by $7 million for Europe, Middle East and Africa and were reduced by $1 million for Corporate due to revisions of management’s estimates related to the Company’s strategic realignment initiatives. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $1,000 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 17. • Operating income (loss) and income (loss) before income taxes were reduced by $85 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $59 million for Corporate and were increased by $21 million for North America related to our acquisition of BodyArmor. Refer to Note 18. • Operating income (loss) and income (loss) before income taxes were reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 17. • Operating income (loss) and income (loss) before income taxes were reduced by $38 million for North America due to the restructuring of our North America operating unit. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $33 million and $34 million, respectively, for North America, and income (loss) before income taxes was reduced by $2 million for Corporate due to the restructuring of our manufacturing operations in the United States. • Income (loss) before income taxes was increased by $153 million for Corporate due to the refranchising of our bottling operations in Cambodia. Refer to Note 2. • Income (loss) before income taxes was reduced by $371 million for Corporate due to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. • Income (loss) before income taxes was reduced by $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 17. • Income (loss) before income taxes was reduced by $34 million for Bottling Investments due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. • Income (loss) before income taxes was reduced by $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 17. In 2021, the results of our operating segments and Corporate were impacted by the following items: • Operating income (loss) and income (loss) before income taxes were reduced by $369 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. • Operating income (loss) and income (loss) before income taxes were reduced by $115 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $98 million for Corporate and $21 million for North America related to various costs incurred in conjunction with our acquisition of BodyArmor. Refer to Note 18. • Operating income (loss) and income (loss) before income taxes were reduced by $78 million for Europe, Middle East and Africa related to the impairment of a trademark. • Operating income (loss) and income (loss) before income taxes were reduced by $63 million and $61 million, respectively, for Europe, Middle East and Africa; $46 million and $160 million, respectively, for Corporate; $12 million and $14 million, respectively, for Asia Pacific; and $11 million and $12 million, respectively, for Latin America due to the Company’s strategic realignment initiatives. In addition, operating income (loss) and income (loss) before income taxes were reduced by $14 million for North America, and income (loss) before income taxes was reduced by $2 million for Bottling Investments due to the Company’s strategic realignment initiatives. Refer to Note 19. • Operating income (loss) and income (loss) before income taxes were reduced by $52 million and $316 million, respectively, for North America, and income (loss) before income taxes was reduced by $2 million for Corporate related to the restructuring of our manufacturing operations in the United States. • Operating income (loss) and income (loss) before income taxes were reduced by $15 million for Corporate related to tax litigation expense. Refer to Note 12. • Income (loss) before income taxes was increased by $834 million for Corporate in conjunction with our acquisition of BodyArmor, which resulted from the remeasurement of our previously held equity interest in BodyArmor to fair value. Refer to Note 2. • Income (loss) before income taxes was increased by $695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2. • Income (loss) before income taxes was increased by $467 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. • Income (loss) before income taxes was increased by $114 million for Corporate related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee. • Income (loss) before income taxes was reduced by $650 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 11. • Income (loss) before income taxes was reduced by $45 million for Bottling Investments and was increased by $32 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Increase (Decrease) in Operating Capital [Abstract] | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities was composed of the following (in millions): Year Ended December 31, 2023 2022 2021 (Increase) decrease in trade accounts receivable $ (2) $ (69) $ (225) (Increase) decrease in inventories 1 (597) (960) (135) (Increase) decrease in prepaid expenses and other current assets (323) 225 (241) Increase (decrease) in accounts payable and accrued expenses 2 841 759 2,843 Increase (decrease) in accrued income taxes (578) (360) (566) Increase (decrease) in other noncurrent liabilities (187) (200) (351) Net change in operating assets and liabilities $ (846) $ (605) $ 1,325 1 The increase in inventories in 2022 was primarily due to improved business performance, higher costs and the buildup of inventory to manage potential supply chain disruptions. 2 The increase in accounts payable and accrued expenses in 2021 was primarily due to an increase in trade accounts payable, higher marketing accruals, BodyArmor acquisition-related accruals and higher annual incentive accruals. Refer to Note 2 for additional information regarding the BodyArmor acquisition. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 10,714 | $ 9,542 | $ 9,771 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. |
Principles of Consolidation | Principles of Consolidation Our Company consolidates all entities that we control by ownership of a majority voting interest. Additionally, there are situations in which consolidation is required even though the usual condition of consolidation (i.e., ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity’s voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which another entity holds a variable interest is referred to as a “VIE.” An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (1) the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Company holds interests in certain VIEs, primarily bottling operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to equity investments, profit guarantees or subordinated financial support. Refer to Note 12. Although these financial arrangements resulted in our holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance. Our Company’s investments, plus any loans and guarantees, and other subordinated financial support related to these VIEs totaled $1,225 million and $1,626 million as of December 31, 2023 and 2022, respectively, representing our maximum exposures to loss. The Company’s investments, plus any loans and guarantees, related to these VIEs were not individually significant to the Company’s consolidated financial statements. In addition, our Company holds interests in certain VIEs, primarily bottling operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company’s investments, plus any loans and guarantees, related to these VIEs totaled $88 million and $109 million as of December 31, 2023 and 2022, respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company’s consolidated financial statements. Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether the VIEs are accounted for as consolidated entities. We use the equity method to account for investments in companies if our investment provides us with the ability to exercise significant influence over the operating and financial policies of the investee. Our consolidated net income includes our Company’s proportionate share of the net income or loss of these companies. Our judgment regarding the level of influence over each equity method investee includes considering key factors, such as our ownership interest, representation on the board of directors, participation in policy-making decisions, other commercial arrangements and material intercompany transactions. We eliminate from our financial results all significant intercompany transactions, including the intercompany transactions with consolidated VIEs and the intercompany portion of transactions with equity method investees. |
Revenue Recognition | Revenue Recognition |
Advertising Costs | Advertising Costs Our Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $5 billion, $4 billion and $4 billion in 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, advertising and production costs of $43 million and $35 million, respectively, were primarily recorded in the line item prepaid expenses and other current assets in our consolidated balance sheets. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs related to the movement of goods from our manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statement of income. Shipping and handling costs incurred to move goods from our manufacturing locations or sales distribution centers to our customers are also included in the line item cost of goods sold in our consolidated statement of income, except for costs incurred to distribute goods sold by our consolidated bottlers to our customers, which are included in the line item selling, general and administrative expenses in our consolidated statement of income. Our customers generally do not pay us separately for shipping and handling costs. We recognize the cost of shipping and handling activities that are performed after a customer obtains control of the goods as costs to fulfill our promise to provide goods to the customer. As a result of this election, the Company does not evaluate whether shipping and handling activities are services promised to customers. If revenue is recognized for the related goods before the shipping and handling activities occur, the related costs of those shipping and handling activities are accrued. |
Sales, Use, Value-Added and Excise Taxes | Sales, Use, Value-Added and Excise Taxes |
Net Income Per Share | Net Income Per Share |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents or restricted cash equivalents, as applicable. Restricted cash and restricted cash equivalents generally consist of amounts held by our captive insurance companies, which are included in the line item other noncurrent assets in our consolidated balance sheet. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk. The following table provides a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): December 31, 2023 2022 2021 Cash and cash equivalents $ 9,366 $ 9,519 $ 9,684 Restricted cash and restricted cash equivalents 1,2 326 306 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 9,692 $ 9,825 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 |
Short-Term Investments | Short-Term Investments We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. |
Investments in Equity and Debt Securities | Investments in Equity and Debt Securities |
Trade Accounts Receivable | Trade Accounts Receivable We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any expected loss on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on available relevant information, in addition to historical loss information, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. The Company has a trade accounts receivable factoring program in certain countries. Under this program, we can elect to sell trade accounts receivables to unaffiliated financial institutions at a discount. In these factoring arrangements, for ease of administration, the Company collects customer payments related to the factored receivables and remits those payments to the financial institutions. The Company sold $17,704 million and $10,709 million of trade accounts receivables under this program during the years ended December 31, 2023 and 2022, respectively. The costs of factoring such receivables were $83 million and $27 million for the years ended December 31, 2023 and 2022, respectively. The Company accounts for this program as a sale, and accordingly, the trade receivables sold are excluded from the line item trade accounts receivable in our consolidated balance sheet. The cash received from the financial institutions is classified within the operating activities section in our consolidated statement of cash flows. |
Inventories | Inventories Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): December 31, 2023 2022 Raw materials and packaging $ 2,618 $ 2,627 Finished goods 1,449 1,247 Other 357 359 Total inventories $ 4,424 $ 4,233 |
Derivative Instruments | Derivative Instruments When deemed appropriate, our Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. All derivatives are carried at fair value in our consolidated balance sheet in the following line items, as applicable: prepaid expenses and other current assets; other noncurrent assets; accounts payable and accrued expenses; and other noncurrent liabilities. The cash flow impact of the Company’s derivative instruments is primarily included in our consolidated statement of cash flows in net cash provided by operating activities. Refer to Note 5. |
Leases | Leases We determine if a contract contains a lease at its inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and are included in the line item other noncurrent assets in our consolidated balance sheet. Operating lease liabilities represent our obligation to make lease payments arising from the lease and are included in the line items accounts payable and accrued expenses and other noncurrent liabilities in our consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. When determining the lease term, we include renewal or termination options that we are reasonably certain to exercise. Leases with a lease term of 12 months or less at inception are not recorded in our consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term in our consolidated statement of income. As most of our leases do not provide an implicit interest rate, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When our contracts contain lease and non-lease components, we account for both components as a single lease component. Refer to Note 10. |
Leases | We have various contracts for certain fountain equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery and equipment: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewal options that we are reasonably certain to exercise, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under finance leases, totaled $1,018 million, $1,125 million and $1,262 million in 2023, 2022 and 2021, respectively. Amortization expense for leasehold improvements totaled $14 million, $13 million and $15 million in 2023, 2022 and 2021, respectively. The following table summarizes our property, plant and equipment (in millions): December 31, 2023 2022 Land $ 229 $ 611 Buildings and improvements 4,647 4,434 Machinery and equipment 13,593 14,030 Property, plant and equipment — cost 18,469 19,075 Less: Accumulated depreciation 9,233 9,234 Property, plant and equipment — net $ 9,236 $ 9,841 Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present and a recoverability test is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment charge. The impairment charge recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models. These appraisals and models include assumptions we believe are consistent with those a market participant would use. |
Goodwill, Trademarks and Other Intangible Assets | Goodwill, Trademarks and Other Intangible Assets We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization; (2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company’s long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, which is less than 20 years. Refer to Note 7. When events or circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management performs a recoverability test of the carrying value by preparing estimates of sales volume and the resulting profit and cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment charge. The impairment charge recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which include assumptions we believe are consistent with those a market participant would use. We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment tests as of the first day of our third fiscal quarter. We perform impairment tests using various valuation methodologies, including discounted cash flow models and a market approach, to determine the fair value of the indefinite-lived intangible asset or the reporting unit, as applicable. We believe our assumptions are consistent with those a market participant would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, rather than completing the impairment test. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform the impairment testing described above. Otherwise, the Company does not need to perform any further assessment. We perform impairment tests of goodwill at our reporting unit level, which is generally one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our geographic operating segments are generally subdivided into smaller geographic regions. These geographic regions are our reporting units. Our Global Ventures operating segment includes the results of our Costa Limited (“Costa”), innocent and doğadan businesses, as well as fees earned pursuant to distribution coordination agreements between the Company and Monster Beverage Corporation (“Monster”), each of which is its own reporting unit. The Bottling Investments operating segment includes all of our consolidated bottling operations, regardless of geographic location. Generally, each consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. In order to test for goodwill impairment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the impairment charge recognized cannot exceed the carrying amount of goodwill. The Company has the option to perform a qualitative assessment of goodwill in order to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company concludes that this is the case, it must perform the impairment testing discussed above. Otherwise, the Company does not need to perform any further assessment. Impairment charges related to intangible assets, including goodwill, are generally recorded in the line item other operating charges or, to the extent they relate to equity method investees, in the line item equity income (loss) — net in our consolidated statement of income. |
Contingencies | Contingencies Our Company is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties, including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Refer to Note 12. |
Stock-Based Compensation | Stock-Based Compensation Our Company grants long-term equity awards under its stock-based compensation plans to certain employees of the Company. These awards include stock options, performance share units, restricted stock and restricted stock units. The fair value of stock option awards is estimated using a Black-Scholes-Merton option-pricing model. The Company recognizes compensation expense on a straight-line basis over the vesting period, which is generally four years. The fair value of restricted stock, restricted stock units and certain performance share units is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period. The Company included a relative total shareowner return (“TSR”) modifier for performance share unit awards granted to executives from 2018 through 2022 as well as for performance share unit awards granted to all participants in 2023. For these awards, the number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range. The fair value of performance share units that include a TSR modifier is determined using a Monte Carlo valuation model. In the reporting period it becomes probable that the minimum performance threshold specified in the performance share unit award will be achieved, we recognize compensation expense for the proportionate share of the total fair value of the performance share units related to the vesting period that has already lapsed for the performance share units expected to vest. The remaining fair value of the performance share units expected to vest is expensed on a straight-line basis over the remainder of the vesting period. In the event the Company determines it is no longer probable that the minimum performance threshold specified in the award will be achieved, we reverse all of the previously recognized compensation expense in the reporting period such a determination is made. The Company has made a policy election to estimate the number of stock-based compensation awards that will ultimately vest to determine the amount of compensation expense recognized each reporting period. Forfeiture estimates are trued-up at the end of each quarter in order to ensure that compensation expense is recognized only for those awards that ultimately vest. Refer to Note 13. |
Income Taxes | Income Taxes Income tax expense includes U.S., state, local and international income taxes. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the book basis and the tax basis of assets and liabilities. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax rate for the year and manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not “more likely than not” to be sustained; (2) the tax position is “more likely than not” to be sustained, but for a lesser amount; or (3) the tax position is “more likely than not” to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and caselaw and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the “more likely than not” recognition threshold would be recognized in income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is “more likely than not” to be sustained; (2) the tax position, amount and/or timing is ultimately settled through negotiation or litigation; or (3) the statute of limitations for the tax position has expired. Refer to Note 12 and Note 15. |
Translation and Remeasurement | Translation and Remeasurement We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. Generally, our foreign subsidiaries use the local currency as their functional currency. Changes in the carrying values of these assets and liabilities attributable to fluctuations in spot rates are recognized in net foreign currency translation adjustments, a component of accumulated other comprehensive income (loss) (“AOCI”). Refer to Note 16. Accounts in our consolidated statement of income are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must be remeasured from the applicable currency to the reporting entity’s functional currency. The effects of the remeasurement of these assets and liabilities are recognized in the line item other income (loss) — net in our consolidated statement of income and are partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheet. Refer to Note 5. |
Recently Adopted Accounting Guidance | Recently Issued Accounting Guidance In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The expanded annual disclosures are effective for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented. The Company is currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires, among other things, additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. The expanded annual disclosures are effective for our year ending December 31, 2025. The Company is currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and whether we will apply the standard prospectively or retrospectively. |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Investments | The following table provides a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): December 31, 2023 2022 2021 Cash and cash equivalents $ 9,366 $ 9,519 $ 9,684 Restricted cash and restricted cash equivalents 1,2 326 306 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 9,692 $ 9,825 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 |
Inventories | Inventories consisted of the following (in millions): December 31, 2023 2022 Raw materials and packaging $ 2,618 $ 2,627 Finished goods 1,449 1,247 Other 357 359 Total inventories $ 4,424 $ 4,233 |
Property, Plant and Equipment | The following table summarizes our property, plant and equipment (in millions): December 31, 2023 2022 Land $ 229 $ 611 Buildings and improvements 4,647 4,434 Machinery and equipment 13,593 14,030 Property, plant and equipment — cost 18,469 19,075 Less: Accumulated depreciation 9,233 9,234 Property, plant and equipment — net $ 9,236 $ 9,841 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets and Liabilities Classified as Held For Sale | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our consolidated balance sheets (in millions): December 31, 2023 2022 Cash, cash equivalents and short-term investments $ 37 $ 229 Marketable securities 8 — Trade accounts receivable, less allowances 95 12 Inventories 299 50 Prepaid expenses and other current assets 60 43 Equity method investments 4 — Other noncurrent assets 51 29 Deferred income tax assets 28 8 Property, plant and equipment — net 1,267 197 Goodwill 231 34 Other intangible assets 14 — Assets held for sale $ 2,094 $ 602 Accounts payable and accrued expenses $ 464 $ 154 Loans and notes payable 63 — Accrued income taxes 24 3 Long-term debt 2 — Other noncurrent liabilities 108 3 Deferred income tax liabilities 58 — Liabilities held for sale $ 719 $ 160 |
NET OPERATING REVENUES (Tables)
NET OPERATING REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions): United States International Total Year Ended December 31, 2023 Concentrate operations $ 8,780 $ 17,759 $ 26,539 Finished product operations 7,770 11,445 19,215 Total $ 16,550 $ 29,204 $ 45,754 Year Ended December 31, 2022 Concentrate operations $ 7,702 $ 16,369 $ 24,071 Finished product operations 7,711 11,222 18,933 Total $ 15,413 $ 27,591 $ 43,004 Year Ended December 31, 2021 Concentrate operations $ 6,551 $ 15,248 $ 21,799 Finished product operations 6,459 10,397 16,856 Total $ 13,010 $ 25,645 $ 38,655 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying value of equity securities by balance sheet location | The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions): Fair Value with Changes Recognized in Income Measurement Alternative — December 31, 2023 Marketable securities $ 345 $ — Other investments 76 42 Other noncurrent assets 1,585 — Total equity securities $ 2,006 $ 42 December 31, 2022 Marketable securities $ 308 $ — Other investments 459 42 Other noncurrent assets 1,303 — Total equity securities $ 2,070 $ 42 |
Net unrealized gains and losses related to equity securities still held at the end of the period | The calculation of net unrealized gains and losses recognized during the year related to equity securities still held at the end of the year is as follows (in millions): Year Ended December 31, 2023 2022 Net gains (losses) recognized during the year related to equity securities $ 371 $ (236) Less: Net gains (losses) recognized during the year related to equity securities sold during the year 52 7 Net unrealized gains (losses) recognized during the year related to equity securities still held at $ 319 $ (243) |
Schedule of available-for-sale and trading securities | Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Fair Value Cost Gains Losses December 31, 2023 Trading securities $ 43 $ — $ (2) $ 41 Available-for-sale securities 1,136 26 (28) 1,134 Total debt securities $ 1,179 $ 26 $ (30) $ 1,175 December 31, 2022 Trading securities $ 43 $ — $ (4) $ 39 Available-for-sale securities 979 26 (61) 944 Total debt securities $ 1,022 $ 26 $ (65) $ 983 |
Carrying values of debt securities by balance sheet location | The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2023 December 31, 2022 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 41 $ 914 $ 39 $ 722 Other noncurrent assets — 220 — 222 Total debt securities $ 41 $ 1,134 $ 39 $ 944 |
Contractual maturities of available-for-sale debt securities | The contractual maturities of these available-for-sale debt securities as of December 31, 2023 were as follows (in millions): Cost Estimated Within 1 year $ 484 $ 483 After 1 year through 5 years 420 427 After 5 years through 10 years 37 48 After 10 years 195 176 Total $ 1,136 $ 1,134 |
Realized Gain (Loss) on Investments | The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions): Year Ended December 31, 2023 2022 2021 Gross gains $ 3 $ 5 $ 6 Gross losses (10) (136) (10) Proceeds 361 1,498 1,197 |
HEDGING TRANSACTIONS AND DERI_2
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of derivative instruments designated and qualified as part of hedging relationship | The following table presents the fair values of the Company’s derivative instruments that were designated and qualified as part of a hedging relationship (in millions): Fair Value 1,2 Derivatives Designated as Hedging Instruments Financial Statement Line Item Impacted 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 109 $ 126 Foreign currency contracts Other noncurrent assets 13 13 Interest rate contracts Other noncurrent assets 50 — Total assets $ 172 $ 139 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 111 $ 54 Foreign currency contracts Other noncurrent liabilities 40 108 Commodity contracts Accounts payable and accrued expenses 3 2 Interest rate contracts Accounts payable and accrued expenses 5 — Interest rate contracts Other noncurrent liabilities 1,113 1,676 Total liabilities $ 1,272 $ 1,840 1 All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 17 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 17 for additional information related to the estimated fair value. |
Derivatives Not Designated as Hedging Instruments | The following table presents the fair values of the Company’s derivative instruments that were not designated as hedging instruments (in millions): Fair Value 1,2 Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 91 $ 46 Foreign currency contracts Other noncurrent assets 3 22 Commodity contracts Prepaid expenses and other current assets 5 34 Other derivative instruments Prepaid expenses and other current assets 4 — Total assets $ 103 $ 102 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 106 $ 87 Foreign currency contracts Other noncurrent liabilities 3 1 Commodity contracts Accounts payable and accrued expenses 62 35 Commodity contracts Other noncurrent liabilities 1 — Other derivative instruments Accounts payable and accrued expenses 4 3 Total liabilities $ 176 $ 126 1 All of the Company’s derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 17 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 17 for additional information related to the estimated fair value. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) and Other Comprehensive Income (OCI) | The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions): Gain (Loss) Financial Statement Line Item Impacted Gain (Loss) 2023 Foreign currency contracts $ (128) Net operating revenues $ (3) Foreign currency contracts 19 Cost of goods sold 14 Foreign currency contracts — Interest expense (4) Foreign currency contracts 35 Other income (loss) — net 17 Commodity contracts (15) Cost of goods sold (14) Total $ (89) $ 10 2022 Foreign currency contracts $ 205 Net operating revenues $ 218 Foreign currency contracts 17 Cost of goods sold 28 Foreign currency contracts — Interest expense (4) Foreign currency contracts (91) Other income (loss) — net (79) Commodity contracts (4) Cost of goods sold (2) Total $ 127 $ 161 2021 Foreign currency contracts $ 36 Net operating revenues $ (77) Foreign currency contracts (2) Cost of goods sold (10) Foreign currency contracts — Interest expense (13) Foreign currency contracts 19 Other income (loss) — net 74 Interest rate contracts 110 Interest expense (90) Commodity contracts (1) Cost of goods sold — Total $ 162 $ (116) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions): Hedging Instruments and Hedged Items Financial Statement Line Item Impacted Gain (Loss) 2023 Interest rate contracts Interest expense $ 609 Fixed-rate debt Interest expense (591) Net impact of fair value hedging instruments $ 18 2022 Interest rate contracts Interest expense $ (1,944) Fixed-rate debt Interest expense 1,927 Net impact of fair value hedging instruments $ (17) 2021 Interest rate contracts Interest expense $ (67) Fixed-rate debt Interest expense 66 Net impact of fair value hedging instruments $ (1) The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions): Cumulative Amount of Fair Value Hedging Adjustments 1 Carrying Values of Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued Balance Sheet Location of Hedged Items December 31, December 31, December 31, December 31, December 31, December 31, Current maturities of long-term debt $ 552 $ — $ 1 $ — $ — $ — Long-term debt 12,186 11,900 (1,135) (1,664) 162 195 1 Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations. In June 2023, the Company amended the terms of its interest rate swap agreements to implement a forward-looking interest rate based on the Secured Overnight Financing Rate (“SOFR”) in place of the London Interbank Offered Rate (“LIBOR”). Since the interest rate swap agreements were affected by reference rate reform, the Company applied the expedients and exceptions provided to preserve the past presentation of its derivatives without de-designating the existing hedging relationships. All amendments to interest rate swap agreements were executed with the existing counterparties and did not change the notional amounts, maturity dates or other critical terms of the hedging relationships. |
Notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges | The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions): Notional Values Gain (Loss) Recognized in OCI as of December 31, Year Ended December 31, 2023 2022 2023 2022 2021 Foreign currency contracts $ 150 $ — $ (6) $ (10) $ (10) Foreign currency denominated debt 12,437 12,061 (376) 751 928 Total $ 12,587 $ 12,061 $ (382) $ 741 $ 918 |
Derivative instruments, not designated as hedging instruments, gain (loss) in earnings | The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted Gain (Loss) Recognized in Income Year Ended December 31, 2023 2022 2021 Foreign currency contracts Net operating revenues $ (74) $ (55) $ 6 Foreign currency contracts Cost of goods sold 66 46 (10) Foreign currency contracts Other income (loss) — net (10) 57 (84) Commodity contracts Cost of goods sold (137) (40) 171 Interest rate contracts Interest expense — — (187) Other derivative instruments Selling, general and administrative expenses 5 (21) 34 Other derivative instruments Other income (loss) — net — — (3) Total $ (150) $ (13) $ (73) |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of financial information for equity method investees | A summary of financial information for our equity method investees in the aggregate is as follows (in millions): Year Ended December 31, 1 2023 2022 2021 Net operating revenues $ 93,862 $ 85,116 $ 79,934 Cost of goods sold 55,780 52,051 47,847 Gross profit $ 38,082 $ 33,065 $ 32,087 Operating income $ 11,868 $ 9,719 $ 9,089 Consolidated net income $ 7,657 $ 6,373 $ 6,050 Less: Net income attributable to noncontrolling interests 75 102 91 Net income attributable to common shareowners $ 7,582 $ 6,271 $ 5,959 Company equity income (loss) — net $ 1,691 $ 1,472 $ 1,438 1 The financial information represents the results of the equity method investees during the Company’s period of ownership. December 31, 2023 2022 Current assets $ 35,087 $ 32,722 Noncurrent assets 74,464 70,523 Total assets $ 109,551 $ 103,245 Current liabilities $ 26,929 $ 23,580 Noncurrent liabilities 33,989 34,740 Total liabilities $ 60,918 $ 58,320 Equity attributable to shareowners of investees $ 47,473 $ 43,917 Equity attributable to noncontrolling interests 1,160 1,008 Total equity $ 48,633 $ 44,925 Company equity method investments $ 19,671 $ 18,264 |
Equity Method Investments Fair Value and Carrying Value | The following table presents the difference between calculated fair value, based on quoted closing prices of publicly traded shares, and our Company’s carrying value in investments in publicly traded companies accounted for under the equity method (in millions): December 31, 2023 Fair Value Carrying Value Difference Monster Beverage Corporation $ 11,766 $ 4,837 $ 6,929 Coca-Cola Europacific Partners plc 5,870 3,858 2,012 Coca-Cola FEMSA, S.A.B. de C.V. 5,549 2,092 3,457 Coca-Cola HBC AG 2,296 1,252 1,044 Coca-Cola Consolidated, Inc. 2,304 473 1,831 Coca-Cola Bottlers Japan Holdings Inc. 484 367 117 Coca-Cola İçecek A.Ş. 911 228 683 Embotelladora Andina S.A. 137 90 47 Total $ 29,317 $ 13,197 $ 16,120 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-lived intangible assets | The following table presents the carrying values of indefinite-lived intangible assets included in our consolidated balance sheets (in millions): December 31, 2023 2022 Trademarks $ 14,349 $ 14,214 Goodwill 18,358 18,782 Other 161 175 Indefinite-lived intangible assets $ 32,868 $ 33,171 |
Carrying value of goodwill by operating segment | The following table provides information related to the carrying value of our goodwill by operating segment (in millions): Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Total 2022 Balance at beginning of year $ 1,280 $ 200 $ 10,665 $ 422 $ 2,976 $ 3,820 $ 19,363 Effect of foreign currency translation (83) 3 — (12) (272) (239) (603) Acquisitions — — — — — 4 4 Purchase accounting adjustments — — 12 2 9 — 23 Divestitures, deconsolidations — — — — (5) — (5) Balance at end of year $ 1,197 $ 203 $ 10,677 $ 412 $ 2,708 $ 3,585 $ 18,782 2023 Balance at beginning of year $ 1,197 $ 203 $ 10,677 $ 412 $ 2,708 $ 3,585 $ 18,782 Effect of foreign currency translation (44) 6 — (11) 120 (264) (193) Divestitures, deconsolidations and other 1 — — — — — (231) (231) Balance at end of year $ 1,153 $ 209 $ 10,677 $ 401 $ 2,828 $ 3,090 $ 18,358 1 The decrease in the Bottling Investments segment was a result of the Company’s bottling operations in the Philippines being classified as held for sale. Refer to Note 2. |
Definite-lived intangible assets | The following table provides information related to definite-lived intangible assets (in millions): December 31, 2023 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Carrying Gross Carrying Accumulated Amortization Net Carrying Customer relationships $ 309 $ (118) $ 191 $ 354 $ (109) $ 245 Trademarks 70 (30) 40 147 (84) 63 Other 183 (59) 124 206 (54) 152 Total $ 562 $ (207) $ 355 $ 707 $ (247) $ 460 |
Estimated amortization expense for the next five years | Based on the carrying value of definite-lived intangible assets as of December 31, 2023, we estimate our amortization expense for the next five years will be as follows (in millions): Amortization 2024 $ 61 2025 54 2026 42 2027 42 2028 34 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following (in millions): December 31, 2023 2022 Accounts payable $ 5,590 $ 5,307 Accrued marketing expenses 2,870 2,778 Accrued compensation 1,394 1,087 Other accrued expenses 1,2 5,631 6,577 Accounts payable and accrued expenses $ 15,485 $ 15,749 1 Includes liabilities held for sale of $719 million and $160 million as of December 31, 2023 and 2022, respectively. Refer to Note 2. 2 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee Operating Lease Balance Sheet Information | Balance sheet information related to operating leases is as follows (in millions): December 31, 2023 2022 Operating lease ROU assets 1 $ 1,328 $ 1,406 Current portion of operating lease liabilities 2 $ 361 $ 341 Noncurrent portion of operating lease liabilities 3 1,001 1,113 Total operating lease liabilities $ 1,362 $ 1,454 1 Operating lease ROU assets are included in the line item other noncurrent assets in our consolidated balance sheets. 2 The current portion of operating lease liabilities is included in the line item accounts payable and accrued expenses in our consolidated balance sheets. 3 The noncurrent portion of operating lease liabilities is included in the line item other noncurrent liabilities in our consolidated balance sheets. |
Lessee Operating Lease Weighted Average Remaining Lease Term and Discount Rate | Information associated with the measurement of our operating lease liabilities as of December 31, 2023 is as follows: Weighted-average remaining lease term 8 years Weighted-average discount rate 3.4 % |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturities of our operating lease liabilities as of December 31, 2023 (in millions): Maturities of Operating Lease Liabilities 2024 $ 395 2025 254 2026 197 2027 153 2028 111 Thereafter 412 Total operating lease payments 1,522 Less: Imputed interest 160 Total operating lease liabilities $ 1,362 |
DEBT AND BORROWING ARRANGEMEN_2
DEBT AND BORROWING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | The Company’s long-term debt consisted of the following (in millions except average rate data): December 31, 2023 December 31, 2022 Amount Average Rate 1 Amount Average Rate 1 Fixed interest rate long-term debt: U.S. dollar notes due 2024-2093 $ 21,982 3.2 % $ 21,966 2.5 % U.S. dollar debentures due 2023-2098 788 4.8 891 4.7 Australian dollar notes due 2024 374 2.7 374 2.7 Euro notes due 2024-2041 12,888 2.7 12,485 0.7 Swiss franc notes due 2028 684 6.0 623 3.2 Other, due through 2098 2 1,763 8.1 1,906 6.7 Fair value adjustments 3 (972) N/A (1,469) N/A Total 4,5 37,507 3.4 % 36,776 2.3 % Less: Current portion 1,960 399 Long-term debt $ 35,547 $ 36,377 1 Rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effective amount of interest rate swap agreements and cross-currency swap agreements, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. 2 As of December 31, 2023 and 2022, the amounts include $1,211 million and $1,368 million, respectively, of debt instruments related to our bottling operations in Africa due through 2026. 3 Amounts represent the changes in fair values due to changes in benchmark interest rates. Refer to Note 5 for additional information about our fair value hedging strategy. 4 As of December 31, 2023 and 2022, the fair value of our long-term debt, including the current portion, was $33,445 million and $32,698 million, respectively. 5 The above notes and debentures include various restrictions, none of which was significant to our Company. |
Schedule of Maturities of Long-term Debt | The following table summarizes the maturities of long-term debt for the five years succeeding December 31, 2023 (in millions): Maturities of 2024 $ 1,960 2025 1,070 2026 1,810 2027 4,616 2028 2,770 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Weighted-average fair value of options granted and the weighted-average assumptions used in the Black Scholes Merton option pricing model for such grants | The weighted-average fair value of stock options granted during the years ended December 31, 2023, 2022 and 2021 and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: Year Ended December 31, 2023 2022 2021 Fair value of stock options on grant date $ 9.84 $ 8.23 $ 5.08 Dividend yield 1 3.0 % 2.8 % 3.3 % Expected volatility 2 17.5 % 18.0 % 18.0 % Risk-free interest rate 3 4.1 % 1.9 % 0.9 % Expected term of stock options 4 6 years 6 years 6 years 1 The dividend yield is the calculated yield on the closing market price per share of the Company’s stock on the grant date. 2 The expected volatility is based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock and other factors. 3 The risk-free interest rate for the period matching the expected term of the stock options is based on the U.S. Treasury yield curve in effect on the grant date. 4 The expected term of the stock options represents the period of time that stock options are expected to be outstanding and is derived by analyzing historical exercise behavior. |
Stock option activity | Stock option activity during the year ended December 31, 2023 was as follows: Shares Weighted-Average Weighted-Average Aggregate Outstanding on January 1, 2023 59 $ 45.93 Granted 3 60.05 Exercised (14) 39.47 Forfeited/expired (1) 55.58 Outstanding on December 31, 2023 47 $ 48.52 4.7 years $ 507 Expected to vest 46 $ 48.38 4.6 years $ 506 Exercisable on December 31, 2023 36 $ 45.55 3.7 years $ 483 |
Summary of information about outstanding nonvested performance share units based on target award levels | The following table summarizes information about outstanding nonvested performance share units based on the target award levels: Performance Share Units Weighted-Average Nonvested on January 1, 2023 3,706 $ 52.94 Granted 1,323 56.63 Vested 1 (1,831) 46.65 Forfeited (344) 54.65 Nonvested on December 31, 2023 2 2,854 $ 58.48 1 Represents the target level of performance share units vested as of December 31, 2023 for the 2021-2023 performance period. Upon certification in February 2024 of the financial results for the performance periods, the final number of shares earned will be determined and released. 2 The outstanding nonvested performance share units as of December 31, 2023 at the threshold award and maximum award levels were approximately 1,139,000 and 6,781,000, respectively. |
Summary of information about vested performance share units based on the certified award level | The following table summarizes information about vested performance share units based on the certified award level: 2020-2022 Annual Award 2021-2022 Performance Share Units Weighted- Performance Share Units Weighted- Certified 3,029 $ 57.00 1,099 $ 48.36 Released during 2023 (3,011) 57.43 (1,091) 48.36 Forfeited during 2023 (18) 57.00 (8) 48.36 |
Summary of information about outstanding nonvested time-based restricted stock and restricted stock units | The following table summarizes information about outstanding nonvested time-based restricted stock and restricted stock units: Restricted Stock and Restricted Stock Units Weighted-Average Nonvested on January 1, 2023 3,030 $ 52.35 Granted 1,645 54.70 Vested and released (865) 54.66 Forfeited (317) 52.43 Nonvested on December 31, 2023 3,493 $ 52.91 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans | The following table sets forth the changes in the benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2023 2022 Benefit obligation at beginning of year 1 $ 6,376 $ 8,580 $ 495 $ 696 Service cost 94 93 4 7 Interest cost 322 232 27 17 Participant contributions 5 5 9 11 Foreign currency exchange rate changes 27 (152) (4) (4) Amendments — 9 1 — Net actuarial loss (gain) 2 375 (1,891) 14 (175) Benefits paid (369) (500) (62) (57) Divestitures — (2) — — Settlements (287) 3 (26) (187) 4 — Curtailments — (1) — — Special termination benefits 1 1 — — Other — 28 — — Benefit obligation at end of year 1 $ 6,544 $ 6,376 $ 297 $ 495 Fair value of plan assets at beginning of year $ 7,158 $ 8,905 $ 373 $ 419 Actual return on plan assets 537 (1,101) 17 (55) Employer contributions 44 33 — — Participant contributions 5 5 7 9 Foreign currency exchange rate changes 76 (258) — — Benefits paid (300) (427) (34) — Settlements (260) 3 (26) (187) 4 — Other — 27 — — Fair value of plan assets at end of year $ 7,260 $ 7,158 $ 176 $ 373 Net asset (liability) recognized $ 716 $ 782 $ (121) $ (122) 1 For pension plans, the benefit obligation is the projected benefit obligation. For other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $6,463 million and $6,307 million as of December 31, 2023 and 2022, respectively. 2 A change in the weighted-average discount rate assumption was the primary driver of net actuarial loss (gain) during 2023 and 2022. For our U.S. qualified pension plan, a decrease in the discount rate resulted in an actuarial loss of $129 million during 2023, and an increase in the discount rate resulted in an actuarial gain of $1,231 million during 2022. Additional drivers of net actuarial loss (gain) included other assumption updates and plan experience. 3 Settlements primarily related to the U.S. qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees. The U.S. qualified pension plan made $259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $76 million settlement charge related to the acceleration of existing unrecognized losses. 4 In 2023, the Company settled its U.S. post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents. The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits. Pursuant to the settlement, the Company transferred $187 million of plan assets and liabilities to an insurer and recognized a $14 million net settlement credit related to the acceleration of existing unrecognized gains. |
Pension and other benefit amounts recognized in consolidated balance sheets | Pension and other postretirement benefit plan amounts recognized in our consolidated balance sheets were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Other noncurrent assets $ 1,543 $ 1,558 $ — $ 44 Accounts payable and accrued expenses (67) (70) (4) (17) Other noncurrent liabilities (760) (706) (117) (149) Net asset (liability) recognized $ 716 $ 782 $ (121) $ (122) |
Schedule of pension plans with projected benefit obligation in excess of fair value of plan assets | Certain of our pension plans have a projected benefit obligation in excess of the fair value of plan assets. For these plans, the projected benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Projected benefit obligation $ 5,270 $ 972 Fair value of plan assets 4,443 197 |
Accumulated benefit obligations in excess of fair value of plan assets | Certain of our pension plans have an accumulated benefit obligation in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Accumulated benefit obligation $ 5,165 $ 880 Fair value of plan assets 4,379 138 Certain of our other postretirement benefit plans have an accumulated postretirement benefit obligation in excess of the fair value of plan assets. For these plans, the accumulated postretirement benefit obligation and the fair value of plan assets were as follows (in millions): December 31, 2023 2022 Accumulated postretirement benefit obligation $ 297 $ 166 Fair value of plan assets 176 — |
Total pension assets for U.S. and non-U.S. plans | The following table presents total assets by asset class for our U.S. and non-U.S. pension plans (in millions): U.S. Pension Plans Non-U.S. Pension Plans December 31, 2023 2022 2023 2022 Cash and cash equivalents $ 203 $ 473 $ 172 $ 162 Equity securities: U.S.-based companies 457 509 721 679 International-based companies 208 285 713 654 Fixed-income securities: Government bonds 848 793 538 445 Corporate bonds and debt securities 426 384 153 115 Mutual, pooled and commingled funds 1 243 304 535 463 Hedge funds/limited partnerships 1,038 915 19 21 Real estate 367 417 9 7 Derivative financial instruments — — 33 (14) Other 266 256 311 290 Total pension plan assets 2 $ 4,056 $ 4,336 $ 3,204 $ 2,822 1 Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. 2 Fair value disclosures related to our pension plan assets are included in Note 17. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension plan assets. |
Other postretirement benefit plan assets | The following table presents total assets by asset class for our other postretirement benefit plans (in millions): December 31, 2023 2022 Cash and cash equivalents $ 10 $ 43 Equity securities: U.S.-based companies 73 133 International-based companies 4 4 Fixed-income securities: Government bonds 14 12 Corporate bonds and debt securities 7 71 Mutual, pooled and commingled funds 39 86 Hedge funds/limited partnerships 18 14 Real estate 6 6 Other 5 4 Total other postretirement benefit plan assets 1 $ 176 $ 373 1 Fair value disclosures related to our other postretirement benefit plan assets are included in Note 17. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets. |
Net periodic benefit cost for pension and other postretirement benefit plans | Net periodic benefit cost or income for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2021 2023 2022 2021 Service cost $ 94 $ 93 $ 97 $ 4 $ 7 $ 9 Interest cost 322 232 183 27 17 15 Expected return on plan assets 1 (475) (558) (606) (14) (16) (17) Amortization of prior service cost 1 — — (3) (3) (2) Amortization of net actuarial loss (gain) 2 96 109 146 (5) — 4 Net periodic benefit cost (income) 38 (124) (180) 9 5 9 Settlement charges (credits) 81 3 (1) 117 4 (14) 5 — — Curtailment credits — (1) (1) — — (1) Special termination benefits 1 1 3 — — — Other — 1 — — — — Total cost (income) $ 120 $ (124) $ (61) $ (5) $ 5 $ 8 1 The Company has elected to use the actual fair value of plan assets as the market-related value of plan assets in the determination of the expected return on plan assets. 2 Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10% of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. 3 Settlements primarily related to the U.S. qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees. The U.S. qualified pension plan made $259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $76 million settlement charge related to the acceleration of existing unrecognized losses. 4 Settlement charges were primarily related to our strategic realignment initiatives. Refer to Note 19. 5 In 2023, the Company settled its U.S. post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents. The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits. Pursuant to the settlement, the Company transferred $187 million of plan assets and liabilities to an insurer and recognized a $14 million net settlement credit related to the acceleration of existing unrecognized gains. |
Changes and amounts in AOCI for pension and other postretirement benefit plans | The following table sets forth the pretax changes in AOCI for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2023 2022 Balance in AOCI at beginning of year $ (1,755) $ (2,125) $ 95 $ (4) Recognized prior service cost (credit) 1 — (3) (3) Recognized net actuarial loss (gain) 177 107 (19) — Prior service cost occurring during the year — (9) (1) — Net actuarial gain (loss) occurring during the year (313) 232 (12) 104 Net foreign currency translation adjustments (16) 40 1 (2) Balance in AOCI at end of year $ (1,906) $ (1,755) $ 61 $ 95 The following table sets forth the pretax amounts in AOCI for our pension and other postretirement benefit plans (in millions): Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Prior service credit (cost) $ (17) $ (17) $ 20 $ 24 Net actuarial gain (loss) (1,889) (1,738) 41 71 Balance in AOCI at end of year $ (1,906) $ (1,755) $ 61 $ 95 |
Certain weighted average assumptions used in computing the benefit obligations and net periodic benefit cost | Certain weighted-average assumptions used in computing the benefit obligations for our pension and other postretirement benefit plans were as follows: Pension Plans Other Postretirement Benefit Plans December 31, 2023 2022 2023 2022 Discount rate 5.00 % 5.50 % 6.25 % 6.00 % Interest crediting rate 3.75 % 4.00 % N/A N/A Rate of increase in compensation levels 4.00 % 3.75 % N/A N/A Certain weighted-average assumptions used in computing net periodic benefit cost or income were as follows: Pension Plans Other Postretirement Benefit Plans Year Ended December 31, 2023 2022 2021 2023 2022 2021 Discount rate 5.50 % 3.00 % 2.50 % 6.00 % 3.25 % 2.75 % Interest crediting rate 4.00 % 3.00 % 3.00 % N/A N/A N/A Rate of increase in compensation levels 3.75 % 3.75 % 3.75 % N/A N/A N/A Expected long-term rate of return on plan assets 6.75 % 7.00 % 7.25 % 3.75 % 4.00 % 4.25 % |
Assumed health care cost trend rates | The weighted-average assumptions for health care cost trend rates were as follows: December 31, 2023 2022 Health care cost trend rate assumed for next year 8.50 % 8.25 % Rate to which the trend rate is assumed to decline (the ultimate trend rate) 6.00 % 5.50 % Year that the trend rate reaches the ultimate trend rate 2029 2030 |
Estimated future benefit payments for pension and other postretirement benefit plans | The expected benefit payments for our pension and other postretirement benefit plans for the 10 years succeeding December 31, 2023 are as follows (in millions): 2024 2025 2026 2027 2028 2029-2033 Benefit payments for pension plans $ 654 $ 615 $ 611 $ 614 $ 489 $ 2,421 Benefit payments for other postretirement 49 29 27 24 23 99 Total $ 703 $ 644 $ 638 $ 638 $ 512 $ 2,520 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes | Income before income taxes consisted of the following (in millions): Year Ended December 31, 2023 2022 2021 United States $ 2,766 $ 3,452 $ 3,538 International 10,186 8,234 8,887 Total $ 12,952 $ 11,686 $ 12,425 |
Schedule of income tax expense (benefit) | Income taxes consisted of the following (in millions): United States State and Local International Total 2023 Current $ 83 $ 129 $ 2,039 $ 2,251 Deferred (135) (78) 211 (2) 2022 Current $ 468 $ 118 $ 1,651 $ 2,237 Deferred (121) (4) 3 (122) 2021 Current $ 243 $ 106 $ 1,378 $ 1,727 Deferred 229 (10) 675 1 894 1 Includes net tax expense of $195 million related to changes in tax laws in certain foreign jurisdictions. |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: Year Ended December 31, 2023 2022 2021 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % State and local income taxes — net of federal benefit 1.1 1.4 1.1 Earnings in jurisdictions taxed at rates different from the statutory U.S. (0.3) (0.6) 2.3 2 Equity income or loss (2.1) (2.7) (2.0) Excess tax benefits on stock-based compensation (0.3) (0.7) (0.5) Other — net (2.0) 1 (0.3) (0.8) 3 Effective tax rate 17.4 % 18.1 % 21.1 % 1 Includes net tax benefit of $118 million (or a 0.9% impact on our effective tax rate) related to domestic provision to return adjustments, as well as for various discrete tax items. Also includes a tax benefit of $88 million (or a 0.7% impact on our effective tax rate) associated with the change in the Company’s indefinite reinvestment assertion for our Philippines and Bangladesh bottling operations. 2 Includes net tax charges of $375 million (or a 3.0% impact on our effective tax rate) related to changes in tax laws in certain foreign jurisdictions, amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other discrete items. 3 Includes a tax benefit of $14 million (or a 1.5% impact on our effective tax rate) associated with the $834 million gain recorded upon the acquisition of the remaining ownership interest in BodyArmor. Refer to Note 2. |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance of unrecognized tax benefits at beginning of year $ 926 $ 906 $ 915 Increase related to prior period tax positions 2 6 9 Decrease related to prior period tax positions (25) — (50) Increase related to current period tax positions 32 38 37 Decrease related to settlements with taxing authorities — (2) (4) Decrease due to lapse of the applicable statute of limitations (2) — — Effect of foreign currency translation (4) (22) (1) Balance of unrecognized tax benefits at end of year $ 929 $ 926 $ 906 |
Deferred tax assets and liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consisted of the following (in millions): December 31, 2023 2022 Deferred tax assets: Property, plant and equipment $ 25 $ 40 Trademarks and other intangible assets 1,414 1,617 Equity method investments (including net foreign currency translation adjustments) 239 366 Derivative financial instruments 156 207 Other liabilities 1,709 1,503 Benefit plans 554 522 Net operating loss carryforwards 273 248 Other 445 530 Gross deferred tax assets 4,815 5,033 Valuation allowances (396) (424) Total deferred tax assets $ 4,419 $ 4,609 Deferred tax liabilities: Property, plant and equipment $ (748) $ (741) Trademarks and other intangible assets (1,917) (1,843) Equity method investments (including net foreign currency translation adjustments) (1,633) (1,632) Derivative financial instruments (282) (488) Other liabilities (330) (372) Benefit plans (428) (490) Other (159) (211) Total deferred tax liabilities $ (5,497) $ (5,777) Net deferred tax assets (liabilities) $ (1,078) $ (1,168) |
Summary of Valuation Allowance | An analysis of our deferred tax asset valuation allowances is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance at beginning of year $ 424 $ 401 $ 406 Additions 28 47 25 Deductions (56) (24) (30) Balance at end of year $ 396 $ 424 $ 401 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
AOCI attributable to the shareowners of The Coca-Cola Company | AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions): December 31, 2023 2022 Net foreign currency translation adjustments $ (12,726) $ (13,609) Accumulated net gains (losses) on derivatives (154) 24 Unrealized net gains (losses) on available-for-sale debt securities (1) (25) Adjustments to pension and other postretirement benefit liabilities (1,394) (1,285) Accumulated other comprehensive income (loss) $ (14,275) $ (14,895) |
Comprehensive Income (Loss) Apportioned between Shareowners of the The Coca-Cola Company and Noncontrolling Interests | The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Year Ended December 31, 2023 Shareowners of Noncontrolling Total Consolidated net income $ 10,714 $ (11) $ 10,703 Other comprehensive income: Net foreign currency translation adjustments 883 (147) 736 Net gains (losses) on derivatives 1 (178) — (178) Net change in unrealized gains (losses) on available-for-sale debt securities 2 24 — 24 Net change in pension and other postretirement benefit liabilities 3 (109) — (109) Total comprehensive income $ 11,334 $ (158) $ 11,176 1 Refer to Note 5 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. 3 Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities. |
OCI attributable to shareowners of The Coca-Cola Company | The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions): Before-Tax Amount Income Tax After-Tax Amount 2023 Foreign currency translation adjustments: Translation adjustments arising during the year $ 366 $ (131) $ 235 Reclassification adjustments recognized in net income 223 — 223 Gains (losses) on intra-entity transactions that are of a long-term investment nature 712 — 712 Gains (losses) on net investment hedges arising during the year 1 (382) 95 (287) Net foreign currency translation adjustments $ 919 $ (36) $ 883 Derivatives: Gains (losses) arising during the year $ (194) $ 23 $ (171) Reclassification adjustments recognized in net income (10) 3 (7) Net gains (losses) on derivatives 1 $ (204) $ 26 $ (178) Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ 28 $ (10) $ 18 Reclassification adjustments recognized in net income 7 (1) 6 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 35 $ (11) $ 24 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ (314) $ 80 $ (234) Reclassification adjustments recognized in net income 157 (32) 125 Net change in pension and other postretirement benefit liabilities 3 $ (157) $ 48 $ (109) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 593 $ 27 $ 620 2022 Foreign currency translation adjustments: Translation adjustments arising during the year $ (125) $ (226) $ (351) Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,419) — (1,419) Gains (losses) on net investment hedges arising during the year 1 741 (185) 556 Net foreign currency translation adjustments $ (603) $ (411) $ (1,014) Derivatives: Gains (losses) arising during the year $ 165 $ (40) $ 125 Reclassification adjustments recognized in net income (161) 40 (121) Net gains (losses) on derivatives 1 $ 4 $ — $ 4 Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ (69) $ 4 $ (65) Reclassification adjustments recognized in net income 131 (29) 102 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 62 $ (25) $ 37 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ 420 $ (90) $ 330 Reclassification adjustments recognized in net income 104 (26) 78 Net change in pension and other postretirement benefit liabilities 3 $ 524 $ (116) $ 408 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (13) $ (552) $ (565) Before-Tax Amount Income Tax After-Tax Amount 2021 Foreign currency translation adjustments: Translation adjustments arising during the year $ 263 $ 19 $ 282 Reclassification adjustments recognized in net income 257 — 257 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,798) — (1,798) Gains (losses) on net investment hedges arising during the year 1 918 (230) 688 Reclassification adjustments for net investment hedges recognized in net income 4 — 4 Net foreign currency translation adjustments $ (356) $ (211) $ (567) Derivatives: Gains (losses) arising during the year $ 160 $ (41) $ 119 Reclassification adjustments recognized in net income 124 (29) 95 Net gains (losses) on derivatives 1 $ 284 $ (70) $ 214 Available-for-sale debt securities: Unrealized gains (losses) arising during the year $ (141) $ 48 $ (93) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (137) $ 47 $ (90) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the year $ 653 $ (138) $ 515 Reclassification adjustments recognized in net income 265 (66) 199 Net change in pension and other postretirement benefit liabilities 3 $ 918 $ (204) $ 714 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 709 $ (438) $ 271 1 Refer to Note 5 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. 3 Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications from AOCI into income recorded during the year ended December 31, 2023 (in millions): Description of AOCI Component Financial Statement Line Item Impacted Amount Reclassified from AOCI Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 223 Income before income taxes 223 Income taxes — Consolidated net income $ 223 Derivatives: Foreign currency contracts Net operating revenues $ 3 Foreign currency contracts Other income (loss) — net (17) Foreign currency contracts Interest expense 4 Income before income taxes (10) Income taxes 3 Consolidated net income $ (7) Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 7 Income before income taxes 7 Income taxes (1) Consolidated net income $ 6 Pension and other postretirement benefit liabilities: Divestitures, deconsolidations and other 2 Other income (loss) — net $ 1 Settlement charges (credits) Other income (loss) — net 67 Recognized net actuarial loss (gain) Other income (loss) — net 91 Recognized prior service cost (credit) Other income (loss) — net (2) Income before income taxes 157 Income taxes (32) Consolidated net income $ 125 1 Related to the refranchising of our bottling operations in Vietnam and the sale of our ownership interest in our equity method investees in Pakistan and Indonesia. Refer to Note 2. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2023 Level 1 Level 2 Level 3 Other 3 Netting Adjustment 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,727 $ 188 $ 6 $ 85 $ — $ 2,006 Debt securities 1 — 1,172 3 — — 1,175 Derivatives 2 — 275 — — (222) 6 53 8 Total assets $ 1,727 $ 1,635 $ 9 $ 85 $ (222) $ 3,234 Liabilities: Contingent consideration liability $ — $ — $ 3,017 5 $ — $ — $ 3,017 Derivatives 2 3 1,445 — — (1,256) 7 192 8 Total liabilities $ 3 $ 1,445 $ 3,017 $ — $ (1,256) $ 3,209 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 5 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5. 5 Represents the fair value of the remaining milestone payment related to our acquisition of fairlife, LLC (“fairlife”) in 2020, which is contingent on fairlife achieving certain financial targets through 2024 and, if achieved, is payable in 2025. This milestone payment is based on agreed-upon formulas related to fairlife’s operating results, the resulting value of which is not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made. The Company made a milestone payment of $275 million during 2023. 6 The Company is obligated to return $4 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $1,039 million in cash collateral it has netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $53 million in the line item other noncurrent assets other noncurrent liabilities December 31, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,801 $ 169 $ 15 $ 85 $ — $ 2,070 Debt securities 1 — 975 8 — — 983 Derivatives 2 2 239 — — (227) 6 14 8 Total assets $ 1,803 $ 1,383 $ 23 $ 85 $ (227) $ 3,067 Liabilities: Contingent consideration liability $ — $ — $ 1,590 5 $ — $ — $ 1,590 Derivatives 2 4 1,962 — — (1,678) 7 288 8 Total liabilities $ 4 $ 1,962 $ 1,590 $ — $ (1,678) $ 1,878 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 5 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made. 6 The Company was not obligated to return any cash collateral it had netted against its derivative position. 7 The Company had the right to reclaim $1,447 million in cash collateral it had netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $14 million in the line item other noncurrent assets other noncurrent liabilities |
Gains and losses on assets measured at fair value on a nonrecurring basis | The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions): Gains (Losses) Year Ended December 31, 2023 2022 Impairment of property, plant and equipment $ (46) 1 $ — Other-than-temporary impairment charges (39) 2 (96) 3 Impairment of intangible assets — (57) 4 Valuation of shares in equity method investee — (24) 5 Total $ (85) $ (177) 1 The Company recorded an asset impairment charge of $25 million during the year ended December 31, 2023 related to the discontinuation of certain manufacturing operations in Asia Pacific. Additionally, the Company recorded an asset impairment charge of $21 million during the year ended December 31, 2023 related to the restructuring of our manufacturing operations in the United States. These charges, which were calculated based on Level 3 inputs, were primarily driven by management’s best estimate of the potential proceeds from the disposal of the related assets. 2 The Company recorded an other-than-temporary impairment charge of $39 million during the year ended December 31, 2023 related to an equity method investee in Latin America. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. 3 The Company recorded an other-than-temporary impairment charge of $96 million during the year ended December 31, 2022 related to an equity method investee in Russia. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. 4 During the year ended December 31, 2022, the Company recorded an impairment charge of $57 million related to a trademark in Asia Pacific, which was primarily driven by a change in brand strategy resulting in revised projections of future operating results for the trademark. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. 5 During the year ended December 31, 2022, we recognized a net loss of $24 million on assets measured at fair value on a nonrecurring basis. The net loss was recorded as a result of an equity method investee issuing additional shares of its stock. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment. This net loss was determined using Level 2 inputs and primarily resulted from the recognition of cumulative translation losses. |
Summary of the levels within the fair value hierarchy of pension plan assets | The following table summarizes the levels within the fair value hierarchy for our pension plan assets (in millions): December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Other 1 Total Level 1 Level 2 Level 3 Other 1 Total Cash and cash equivalents $ 163 $ 212 $ — $ — $ 375 $ 146 $ 489 $ — $ — $ 635 Equity securities: U.S.-based companies 1,148 — 30 — 1,178 1,157 7 24 — 1,188 International-based companies 904 15 2 — 921 920 16 3 — 939 Fixed-income securities: Government bonds 107 1,279 — — 1,386 91 1,147 — — 1,238 Corporate bonds and debt — 552 27 — 579 — 469 30 — 499 Mutual, pooled and commingled 12 257 — 509 4 778 35 202 — 530 4 767 Hedge funds/limited — — — 1,057 5 1,057 — — — 936 5 936 Real estate — — — 376 6 376 — — — 424 6 424 Derivative financial instruments — 33 2 — — 33 — (14) 2 — — (14) Other — — 323 3 254 7 577 — — 300 3 246 7 546 Total $ 2,334 $ 2,348 $ 382 $ 2,196 $ 7,260 $ 2,349 $ 2,316 $ 357 $ 2,136 $ 7,158 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 14. 2 This class of assets includes investments in interest rate contracts, credit contracts and foreign exchange contracts. 3 Includes purchased annuity insurance contracts. 4 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developing and emerging markets. There are no liquidity restrictions on these investments. 5 This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to semiannually, with a redemption notice period of up to one year and/or initial lock-up periods of up to three years, and private equity funds that are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed. 6 This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation and can be subject to redemption restrictions, ranging from quarterly to semiannually, with a redemption notice period of up to 90 days. 7 Primarily includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semiannual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions. |
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans (in millions): Equity Fixed-Income Securities Other 1 Total 2022 Balance at beginning of year $ 27 $ 29 $ 283 $ 339 Actual return on plan assets (12) 1 5 (6) Purchases, sales and settlements — net (1) 4 — 3 Transfers into (out of) Level 3 — net 13 (4) — 9 Other — — 27 27 Net foreign currency translation adjustments — — (15) (15) Balance at end of year $ 27 $ 30 $ 300 $ 357 2023 Balance at beginning of year $ 27 $ 30 $ 300 $ 357 Actual return on plan assets 1 (2) 8 7 Purchases, sales and settlements — net — (1) 7 6 Transfers into (out of) Level 3 — net 4 — — 4 Net foreign currency translation adjustments — — 8 8 Balance at end of year $ 32 $ 27 $ 323 $ 382 1 Includes purchased annuity insurance contracts. |
Summary of the fair value of postretirement benefit plan assets | The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets (in millions): December 31, 2023 December 31, 2022 Level 1 Level 2 Other 1 Total Level 1 Level 2 Other 1 Total Cash and cash equivalents $ 6 $ 4 $ — $ 10 $ 35 $ 8 $ — $ 43 Equity securities: U.S.-based companies 73 — — 73 133 — — 133 International-based companies 4 — — 4 4 — — 4 Fixed-income securities: Government bonds — 14 — 14 — 12 — 12 Corporate bonds and debt securities — 7 — 7 — 71 — 71 Mutual, pooled and commingled funds — 37 2 39 — 83 3 86 Hedge funds/limited partnerships — — 18 18 — — 14 14 Real estate — — 6 6 — — 6 6 Other — — 5 5 — — 4 4 Total $ 83 $ 62 $ 31 $ 176 $ 172 $ 174 $ 27 $ 373 1 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Strategic Realignment Initiatives Costs | The following table summarizes the balance of accrued expenses related to these strategic realignment initiatives (in millions): Severance Pay Outside Services Other Total 2021 Accrued balance at beginning of year $ 181 $ 1 $ 3 $ 185 Costs incurred 224 37 2 263 Payments (265) (35) (3) (303) Noncash and exchange (120) 1 (2) — (122) Accrued balance at end of year $ 20 $ 1 $ 2 $ 23 2022 Accrued balance at beginning of year $ 20 $ 1 $ 2 $ 23 Costs incurred (4) — (2) (6) Payments (15) — — (15) Noncash and exchange 1 — — 1 Accrued balance at end of year $ 2 $ 1 $ — $ 3 2023 Accrued balance at beginning of year $ 2 $ 1 $ — $ 3 Payments (2) — — (2) Noncash and exchange — (1) — (1) Accrued balance at end of year $ — $ — $ — $ — 1 Includes pension settlement charges. Refer to Note 14. |
Restructuring And Related Costs North America OU | The following table summarizes the balance of accrued expenses related to these North America operating unit restructuring initiatives (in millions): Severance Pay Outside Services Other Total 2022 Costs incurred $ 38 $ — $ — $ 38 Payments (1) — — (1) Accrued balance at end of year $ 37 $ — $ — $ 37 2023 Accrued balance at beginning of year $ 37 $ — $ — $ 37 Costs incurred 22 1 4 27 Payments (58) (1) (4) (63) Accrued balance at end of year $ 1 $ — $ — $ 1 |
Productivity and Reinvestment Initiatives Costs | The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts (in millions): Severance Pay Outside Services Other Total 2021 Accrued balance at beginning of year $ 15 $ — $ 2 $ 17 Costs incurred 4 97 14 115 Payments (6) (97) (14) (117) Noncash and exchange (1) — 3 2 Accrued balance at end of year $ 12 $ — $ 5 $ 17 2022 Accrued balance at beginning of year $ 12 $ — $ 5 $ 17 Costs incurred (4) 81 8 85 Payments (2) (81) (11) (94) Noncash and exchange (2) — — (2) Accrued balance at end of year $ 4 $ — $ 2 $ 6 2023 Accrued balance at beginning of year $ 4 $ — $ 2 $ 6 Costs incurred (1) 131 34 164 Payments — (124) (42) (166) Noncash and exchange — (7) 6 (1) Accrued balance at end of year $ 3 $ — $ — $ 3 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of total net operating revenues related to concentrate and finished products operation | The following table sets forth the percentage of total net operating revenues attributable to concentrate operations and finished product operations: Year Ended December 31, 2023 2022 2021 Concentrate operations 58 % 56 % 56 % Finished product operations 42 44 44 Total 100 % 100 % 100 % |
Schedule of net revenue and property plant and equipment by Geography | The following table provides information related to our net operating revenues (in millions): Year Ended December 31, 2023 2022 2021 United States $ 16,550 $ 15,413 $ 13,010 International 29,204 27,591 25,645 Net operating revenues $ 45,754 $ 43,004 $ 38,655 The following table provides information related to our property, plant and equipment — net (in millions): Year Ended December 31, 2023 2022 2021 United States $ 3,682 $ 3,494 $ 3,420 International 5,554 6,347 6,500 Property, plant and equipment — net $ 9,236 $ 9,841 $ 9,920 |
Schedule of Segment Reporting Information, by Segment | Information about our Company’s operations by operating segment and Corporate is as follows (in millions): Europe, Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated As of and for the Year Ended December 31, 2023 Net operating revenues: Third party $ 7,392 $ 5,830 $ 16,766 $ 4,724 $ 3,064 $ 7,852 $ 126 $ — $ 45,754 Intersegment 686 — 8 731 — 8 — (1,433) — Total net operating revenues 8,078 5,830 16,774 5,455 3,064 7,860 126 (1,433) 45,754 Operating income (loss) 4,202 3,432 4,435 2,040 329 578 (3,705) — 11,311 Interest income — — 47 — 6 — 854 — 907 Interest expense — — — — — — 1,527 — 1,527 Depreciation and amortization 59 48 310 50 128 389 144 — 1,128 Equity income (loss) — net 16 9 — (146) — 1,495 317 — 1,691 Income (loss) before income taxes 4,255 3,404 4,450 1,905 338 2,119 (3,519) — 12,952 Identifiable operating assets 7,117 3,149 25,808 2,428 2 7,607 9,871 2 21,934 — 77,914 Investments 1 389 712 15 71 — 13,639 4,963 — 19,789 Capital expenditures 43 1 412 23 192 843 338 — 1,852 As of and for the Year Ended December 31, 2022 Net operating revenues: Third party $ 6,896 $ 4,910 $ 15,667 $ 4,711 $ 2,843 $ 7,883 $ 94 $ — $ 43,004 Intersegment 627 — 7 734 — 8 — (1,376) — Total net operating revenues 7,523 4,910 15,674 5,445 2,843 7,891 94 (1,376) 43,004 Operating income (loss) 3,958 2,870 3,742 2,303 185 487 (2,636) — 10,909 Interest income — — 29 — 9 — 411 — 449 Interest expense — — — — — — 882 — 882 Depreciation and amortization 63 39 330 58 140 435 195 — 1,260 Equity income (loss) — net 43 7 (1) 9 — 1,184 230 — 1,472 Income (loss) before income taxes 3,952 2,879 3,768 2,320 196 1,743 (3,172) — 11,686 Identifiable operating assets 7,088 2,067 25,760 2,368 3 7,325 10,232 3 19,158 — 73,998 Investments 1 410 629 15 219 — 12,892 4,600 — 18,765 Capital expenditures 50 4 280 22 179 697 252 — 1,484 Year Ended December 31, 2021 Net operating revenues: Third party $ 6,564 $ 4,143 $ 13,184 $ 4,682 $ 2,805 $ 7,194 $ 83 $ — $ 38,655 Intersegment 629 — 6 609 — 9 2 (1,255) — Total net operating revenues 7,193 4,143 13,190 5,291 2,805 7,203 85 (1,255) 38,655 Operating income (loss) 3,735 2,534 3,331 2,325 293 473 (2,383) — 10,308 Interest income — — 40 — 10 — 226 — 276 Interest expense — — — — — — 1,597 — 1,597 Depreciation and amortization 76 39 388 49 135 529 236 — 1,452 Equity income (loss) — net 33 9 22 8 (6) 1,071 301 — 1,438 Income (loss) before income taxes 3,821 2,542 3,140 2,350 310 1,596 (1,334) — 12,425 Capital expenditures 35 2 228 65 285 560 192 — 1,367 1 Principally equity method investments and other investments in bottling companies. 2 Property, plant and equipment — net in India represented 12% of consolidated property, plant and equipment — net as of December 31, 2023. 3 Property, plant and equipment — net in the Philippines represented 10% of consolidated property, plant and equipment — net as of December 31, 2022. As of December 31, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale. Refer to Note 2. |
NET CHANGE IN OPERATING ASSET_2
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Increase (Decrease) in Operating Capital [Abstract] | |
Net change in operating assets and liabilities | Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities was composed of the following (in millions): Year Ended December 31, 2023 2022 2021 (Increase) decrease in trade accounts receivable $ (2) $ (69) $ (225) (Increase) decrease in inventories 1 (597) (960) (135) (Increase) decrease in prepaid expenses and other current assets (323) 225 (241) Increase (decrease) in accounts payable and accrued expenses 2 841 759 2,843 Increase (decrease) in accrued income taxes (578) (360) (566) Increase (decrease) in other noncurrent liabilities (187) (200) (351) Net change in operating assets and liabilities $ (846) $ (605) $ 1,325 1 The increase in inventories in 2022 was primarily due to improved business performance, higher costs and the buildup of inventory to manage potential supply chain disruptions. 2 The increase in accounts payable and accrued expenses in 2021 was primarily due to an increase in trade accounts payable, higher marketing accruals, BodyArmor acquisition-related accruals and higher annual incentive accruals. Refer to Note 2 for additional information regarding the BodyArmor acquisition. |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 9,366 | $ 9,519 | $ 9,684 | |
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Restricted Cash and Restricted Cash Equivalents | $ 326 | $ 306 | $ 341 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 9,692 | $ 9,825 | $ 10,025 | $ 7,110 |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Line Items] | ||
Raw materials and packaging | $ 2,618 | $ 2,627 |
Finished goods | 1,449 | 1,247 |
Other | 357 | 359 |
Total inventories | $ 4,424 | $ 4,233 |
BUSINESS AND SUMMARY OF SIGNI_6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT, EQUIPMENT (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | |||
Property, plant and equipment - cost | $ 18,469 | $ 19,075 | |
Accumulated depreciation | 9,233 | 9,234 | |
Property, plant and equipment-net | 9,236 | 9,841 | $ 9,920 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment - cost | 229 | 611 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment - cost | 4,647 | 4,434 | |
Machinery and Equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment - cost | $ 13,593 | $ 14,030 |
BUSINESS AND SUMMARY OF SIGNI_7
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Accounting Policies [Line Items] | |||
Number of countries where finished beverage products bearing our trademarks are sold | 200 | ||
Beverage servings consumed per day which bears trademarks owned by or licensed by the entity, number | 2,200,000,000 | ||
Beverage servings consumed per day, number | 64,000,000,000 | ||
Advertising costs included in selling, general and administrative expenses | $ 5,000 | $ 4,000 | $ 4,000 |
Advertising and production costs recorded in prepaid expenses and other assets | $ 43 | $ 35 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 8 | 8 | 6 |
Investments classified as cash equivalents, maximum maturity period (in months) | 3 | ||
Investments classified as short term investments maturity period, low end of the range (in months) | 3 | ||
Investments classified as short term investments maturity period, high end of the range (in years) | 1 | ||
Accounts Receivable, Sale | $ 17,704 | $ 10,709 | |
Gain (Loss) on Sale of Accounts Receivable | 83 | 27 | |
Depreciation expense | $ 1,018 | 1,125 | $ 1,262 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Buildings and improvements | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life, Maximum | 40 years | ||
Machinery and Equipment | |||
Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life, Maximum | 20 years | ||
Leasehold Improvements | |||
Accounting Policies [Line Items] | |||
Amortization | $ 14 | 13 | $ 15 |
Maximum | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Primary beneficiary | |||
Accounting Policies [Line Items] | |||
VIEs maximum exposures to loss | $ 88 | 109 | |
Not primary beneficiary | |||
Accounting Policies [Line Items] | |||
VIEs maximum exposures to loss | $ 1,225 | $ 1,626 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - NARRATIVE (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | 14 Months Ended | |||
Nov. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Significant Acquisitions and Disposals [Line Items] | ||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 62 | $ 73 | $ 4,766 | |||
Goodwill, Acquired During Period | 4 | |||||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 430 | 458 | 2,180 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | 114 | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 123 | 293 | ||||
BodyArmor | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 4,745 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 85% | |||||
Ownership Percentage by Parent | 100% | |||||
Purchase Price | $ 5,600 | |||||
Purchase price held back related to indemnification obligations | $ 860 | |||||
Payments to Acquire Businesses, Gross | 311 | $ 549 | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 834 | |||||
Indefinite-lived Intangible Assets Acquired | 4,200 | |||||
Goodwill, Acquired During Period | 2,200 | |||||
Expected Tax Deductible Amount of Goodwill Allocation | $ 1,200 | 1,200 | $ 1,200 | |||
North America | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Goodwill, Acquired During Period | 0 | |||||
North America | BodyArmor | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Goodwill, Acquired During Period | 1,900 | |||||
Other Segments | BodyArmor | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Goodwill, Acquired During Period | 300 | |||||
Cambodia Bottling Operations | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Proceeds from Divestiture of Businesses | 228 | |||||
Gain (Loss) on Disposition of Business | $ 153 | |||||
CCA | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 695 | |||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | 1,738 | |||||
Vietnam Bottling Operations | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $ 823 | |||||
Gain (Loss) on Disposition of Business | 439 | |||||
Indonesia and Pakistan | ||||||
Significant Acquisitions and Disposals [Line Items] | ||||||
Receivable with Imputed Interest, Face Amount | 200 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 94 | $ 695 | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates | $ 402 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - HELD FOR SALE ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Business Combination and Asset Acquisition [Abstract] | ||
Cash, cash equivalents and short-term investments | $ 37 | $ 229 |
Marketable securities | 8 | 0 |
Trade accounts receivable, less allowances | 95 | 12 |
Inventories | 299 | 50 |
Prepaid expenses and other current assets | 60 | 43 |
Equity method investments | 4 | 0 |
Other noncurrent assets | 51 | 29 |
Deferred income tax assets | 28 | 8 |
Property, plant and equipment — net | 1,267 | 197 |
Goodwill | 231 | 34 |
Other intangible assets | 14 | 0 |
Assets held for sale | 2,094 | 602 |
Accounts payable and accrued expenses | 464 | 154 |
Loans and notes payable | 63 | 0 |
Accrued income taxes | 24 | 3 |
Long-term debt | 2 | 0 |
Other noncurrent liabilities | 108 | 3 |
Deferred income tax liabilities | 58 | 0 |
Liabilities held for sale | $ 719 | $ 160 |
NET OPERATING REVENUES (Details
NET OPERATING REVENUES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net operating revenues related to concentrate operations | $ 26,539 | $ 24,071 | $ 21,799 |
Net operating revenues related to finished product operations | 19,215 | 18,933 | 16,856 |
Revenues | 45,754 | 43,004 | 38,655 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net operating revenues related to concentrate operations | 8,780 | 7,702 | 6,551 |
Net operating revenues related to finished product operations | 7,770 | 7,711 | 6,459 |
Revenues | 16,550 | 15,413 | 13,010 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net operating revenues related to concentrate operations | 17,759 | 16,369 | 15,248 |
Net operating revenues related to finished product operations | 11,445 | 11,222 | 10,397 |
Revenues | $ 29,204 | $ 27,591 | $ 25,645 |
INVESTMENTS - Carrying Value of
INVESTMENTS - Carrying Value of Equity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI | $ 2,006 | $ 2,070 |
Equity Securities, FV-NI | 2,006 | 2,070 |
Equity Securities without Readily Determinable Fair Value, Amount | 42 | 42 |
Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI | 345 | 308 |
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 0 |
Other Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Noncurrent | 76 | 459 |
Equity Securities without Readily Determinable Fair Value, Amount | 42 | 42 |
Other noncurrent assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Noncurrent | 1,585 | 1,303 |
Equity Securities without Readily Determinable Fair Value, Amount | $ 0 | $ 0 |
INVESTMENTS - Unrealized Gain (
INVESTMENTS - Unrealized Gain (Loss) Recognized Related to Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity Securities, FV-NI, Gain (Loss) | $ 371 | $ (236) |
Equity Securities, FV-NI, Realized Gain (Loss) | 52 | 7 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 319 | $ (243) |
INVESTMENTS - Debt Securities (
INVESTMENTS - Debt Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost | ||
Available-for-sale securities | $ 1,136 | |
Estimated Fair Value | ||
Available-for-sale securities | 1,134 | |
Debt Securities | 1,175 | $ 983 |
Debt Securities | ||
Cost | ||
Trading securities | 43 | 43 |
Available-for-sale securities | 1,136 | 979 |
Total debt securities | 1,179 | 1,022 |
Gains | ||
Trading securities | 0 | 0 |
Available-for-sale securities | 26 | 26 |
Total debt securities | 26 | 26 |
Losses | ||
Trading securities | (2) | (4) |
Available-for-sale securities | (28) | (61) |
Total debt securities | (30) | (65) |
Estimated Fair Value | ||
Trading securities | 41 | 39 |
Available-for-sale securities | 1,134 | 944 |
Debt Securities | $ 1,175 | $ 983 |
INVESTMENTS - Balance Sheet Cla
INVESTMENTS - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | $ 1,175 | $ 983 |
Trading Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 41 | 39 |
Available-for-Sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 1,134 | 944 |
Marketable securities | Trading Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 41 | 39 |
Marketable securities | Available-for-Sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 914 | 722 |
Other noncurrent assets | Trading Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | 0 | 0 |
Other noncurrent assets | Available-for-Sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total debt securities | $ 220 | $ 222 |
INVESTMENTS - Contractual Matur
INVESTMENTS - Contractual Maturity of Available for Sale Debt Securities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cost | |
Within 1 year | $ 484 |
After 1 year through 5 years | 420 |
After 5 years through 10 years | 37 |
After 10 years | 195 |
Available-for-sale securities | 1,136 |
Estimated Fair Value | |
Within 1 year | 483 |
After 1 year through 5 years | 427 |
After 5 years through 10 years | 48 |
After 10 years | 176 |
Available-for-sale securities | $ 1,134 |
INVESTMENTS - Sale and_or Matur
INVESTMENTS - Sale and/or Maturity of Available-for-Sale Securities (Details) - Debt Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Gross gains | $ 3 | $ 5 | $ 6 |
Gross losses | (10) | (136) | (10) |
Proceeds | $ 361 | $ 1,498 | $ 1,197 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - Available-for-Sale Securities - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Solvency Funds of Insurance Captive | $ 1,643 | $ 1,378 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Solvency Funds of Insurance Captive | $ 1,643 | $ 1,378 |
HEDGING TRANSACTIONS AND DERI_3
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments Designed and Qualified as Hedging Relationships (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | $ 172 | $ 139 |
Derivative Instruments, Liabilities, Fair Value | 1,272 | 1,840 |
Foreign currency contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 109 | 126 |
Foreign currency contracts | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 13 | 13 |
Foreign currency contracts | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 111 | 54 |
Foreign currency contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 40 | 108 |
Commodity contracts | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 3 | 2 |
Interest rate contracts | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 50 | 0 |
Interest rate contracts | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 5 | 0 |
Interest rate contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | $ 1,113 | $ 1,676 |
HEDGING TRANSACTIONS AND DERI_4
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | $ 103 | $ 102 |
Derivative Instruments, Liabilities, Fair Value | 176 | 126 |
Foreign currency contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 91 | 46 |
Foreign currency contracts | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 3 | 22 |
Foreign currency contracts | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 106 | 87 |
Foreign currency contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 3 | 1 |
Commodity contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 5 | 34 |
Commodity contracts | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 62 | 35 |
Commodity contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | 1 | 0 |
Other derivative instruments | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Assets, Fair Value | 4 | 0 |
Other derivative instruments | Accounts Payable and Accrued Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments, Liabilities, Fair Value | $ 4 | $ 3 |
HEDGING TRANSACTIONS AND DERI_5
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges Included in OCI, AOCI and Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | $ (194) | $ 165 | $ 160 |
Derivatives reclassification adjustments recognized in net income | 10 | 161 | (124) |
Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | (89) | 127 | 162 |
Derivatives reclassification adjustments recognized in net income | 10 | 161 | (116) |
Net operating revenues | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives reclassification adjustments recognized in net income | (3) | ||
Net operating revenues | Foreign currency contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | (128) | 205 | 36 |
Derivatives reclassification adjustments recognized in net income | (3) | 218 | (77) |
Cost of goods sold | Foreign currency contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | 19 | 17 | (2) |
Derivatives reclassification adjustments recognized in net income | 14 | 28 | (10) |
Cost of goods sold | Commodity contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | (15) | (4) | (1) |
Derivatives reclassification adjustments recognized in net income | (14) | (2) | 0 |
Interest expense | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives reclassification adjustments recognized in net income | (4) | ||
Interest expense | Foreign currency contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | 0 | 0 | 0 |
Derivatives reclassification adjustments recognized in net income | (4) | (4) | (13) |
Interest expense | Interest rate contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | 110 | ||
Derivatives reclassification adjustments recognized in net income | (90) | ||
Other income (loss) - net | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives reclassification adjustments recognized in net income | 17 | ||
Other income (loss) - net | Foreign currency contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) arising during the year | 35 | (91) | 19 |
Derivatives reclassification adjustments recognized in net income | $ 17 | $ (79) | $ 74 |
HEDGING TRANSACTIONS AND DERI_6
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Amounts Related to Derivatives Designated as Fair Value Hedges (Details) - Fair Value Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ 18 | $ (17) | $ (1) |
Short-term Debt | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Amount of Hedged Item | 552 | 0 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 1 | 0 | |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 | |
Long-term Debt | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Amount of Hedged Item | 12,186 | 11,900 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (1,135) | (1,664) | |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 162 | 195 | |
Interest rate contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ 609 | $ (1,944) | $ (67) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Fixed Rate Debt | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ (591) | $ 1,927 | $ 66 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
HEDGING TRANSACTIONS AND DERI_7
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Amounts Related to Derivatives Designated as Net Investment Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (losses) on net investment hedges arising during the year | $ (382) | $ 741 | $ 918 |
Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 12,587 | 12,061 | |
Gains (losses) on net investment hedges arising during the year | (382) | 741 | 918 |
Foreign currency contracts | Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 150 | 0 | |
Gains (losses) on net investment hedges arising during the year | (6) | (10) | (10) |
Foreign currency denominated debt | Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 12,437 | 12,061 | |
Gains (losses) on net investment hedges arising during the year | $ (376) | $ 751 | $ 928 |
HEDGING TRANSACTIONS AND DERI_8
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Derivatives Not Designated as Hedging Instruments Impact on Earnings (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ (150) | $ (13) | $ (73) |
Foreign currency contracts | Net operating revenues | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (74) | (55) | 6 |
Foreign currency contracts | Cost of goods sold | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 66 | 46 | (10) |
Foreign currency contracts | Other income (loss) - net | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (10) | 57 | (84) |
Commodity contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ (137) | $ (40) | $ 171 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | Cost of goods sold |
Interest rate contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ (187) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Other derivative instruments | Selling, general and administrative expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ 5 | $ (21) | $ 34 |
Other derivative instruments | Other income (loss) - net | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ (3) |
HEDGING TRANSACTIONS AND DERI_9
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Maximum length of time over which future cash flow exposures are hedged (in years) | 3 years | ||
Anticipated gains (losses) cash flow hedges, estimated reclassification to earnings during next twelve months | $ (72) | ||
Reclassification adjustments recognized in net income | (223) | $ (200) | $ (257) |
Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 12,587 | 12,061 | |
Reclassification adjustments recognized in net income | $ (4) | ||
Foreign currency contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 9,408 | 5,510 | |
Foreign currency contracts | Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 150 | 0 | |
Currency Swap | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 958 | 958 | |
Commodity contracts | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 54 | 35 | |
Interest Rate Swap | Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 750 | ||
Interest Rate Swap | Fair Value Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 13,693 | 13,425 | |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 6,989 | 4,902 | |
Not Designated as Hedging Instrument | Commodity contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | $ 325 | $ 336 |
EQUITY METHOD INVESTMENTS - Sum
EQUITY METHOD INVESTMENTS - Summary of financial information for equity method investees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity method investments, disclosures | |||
Net Operating Revenues | $ 45,754 | $ 43,004 | $ 38,655 |
Cost of goods sold | 18,520 | 18,000 | 15,357 |
Gross Profit | 27,234 | 25,004 | 23,298 |
Operating Income (Loss) | 11,311 | 10,909 | 10,308 |
Consolidated Net Income | 10,703 | 9,571 | 9,804 |
Net Income (Loss) Attributable to Noncontrolling Interest | (11) | 29 | 33 |
Net Income Attributable to Shareowners of The Coca-Cola Company | 10,714 | 9,542 | 9,771 |
Equity income (loss) — net | 1,691 | 1,472 | 1,438 |
Assets, Current | 26,732 | 22,591 | |
Total Assets | 97,703 | 92,763 | |
Liabilities, Current | 23,571 | 19,724 | |
Stockholders' Equity Attributable to Parent | 25,941 | 24,105 | |
Equity attributable to noncontrolling interests | 1,539 | 1,721 | |
Total Equity | 27,480 | 25,826 | |
Equity Method Investments | 19,671 | 18,264 | |
Equity Method Investment, Nonconsolidated Investee, Other | |||
Equity method investments, disclosures | |||
Net Operating Revenues | 93,862 | 85,116 | 79,934 |
Cost of goods sold | 55,780 | 52,051 | 47,847 |
Gross Profit | 38,082 | 33,065 | 32,087 |
Operating Income (Loss) | 11,868 | 9,719 | 9,089 |
Consolidated Net Income | 7,657 | 6,373 | 6,050 |
Net Income (Loss) Attributable to Noncontrolling Interest | 75 | 102 | 91 |
Net Income Attributable to Shareowners of The Coca-Cola Company | 7,582 | 6,271 | $ 5,959 |
Assets, Current | 35,087 | 32,722 | |
Assets, Noncurrent | 74,464 | 70,523 | |
Total Assets | 109,551 | 103,245 | |
Liabilities, Current | 26,929 | 23,580 | |
Liabilities, Noncurrent | 33,989 | 34,740 | |
Liabilities, Total | 60,918 | 58,320 | |
Stockholders' Equity Attributable to Parent | 47,473 | 43,917 | |
Equity attributable to noncontrolling interests | 1,160 | 1,008 | |
Total Equity | $ 48,633 | $ 44,925 |
EQUITY METHOD INVESTMENTS - Equ
EQUITY METHOD INVESTMENTS - Equity Method Investments Fair Value and Carrying Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Equity method investments, disclosures | ||
Equity Method Investments | $ 19,671 | $ 18,264 |
Investment in equity method investees in excess of the proportionate share of net assets | 8,634 | |
Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 29,317 | |
Equity Method Investments | 13,197 | |
Investment in equity method investees in excess of the proportionate share of net assets | 16,120 | |
Monster Beverage Corporation | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 11,766 | |
Equity Method Investments | 4,837 | |
Investment in equity method investees in excess of the proportionate share of net assets | 6,929 | |
CCEP | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 5,870 | |
Equity Method Investments | 3,858 | |
Investment in equity method investees in excess of the proportionate share of net assets | 2,012 | |
Coca-Cola FEMSA | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 5,549 | |
Equity Method Investments | 2,092 | |
Investment in equity method investees in excess of the proportionate share of net assets | 3,457 | |
Coca-Cola Hellenic | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 2,296 | |
Equity Method Investments | 1,252 | |
Investment in equity method investees in excess of the proportionate share of net assets | 1,044 | |
Coca-Cola Consolidated | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 2,304 | |
Equity Method Investments | 473 | |
Investment in equity method investees in excess of the proportionate share of net assets | 1,831 | |
Coca-Cola Bottlers Japan | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 484 | |
Equity Method Investments | 367 | |
Investment in equity method investees in excess of the proportionate share of net assets | 117 | |
Coca-Cola Icecek | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 911 | |
Equity Method Investments | 228 | |
Investment in equity method investees in excess of the proportionate share of net assets | 683 | |
Andina | Exchange Traded | ||
Equity method investments, disclosures | ||
Equity Method Investment, Fair Value | 137 | |
Equity Method Investments | 90 | |
Investment in equity method investees in excess of the proportionate share of net assets | $ 47 |
EQUITY METHOD INVESTMENTS - Nar
EQUITY METHOD INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity method investments, disclosures | |||
Investment in equity method investees in excess of the proportionate share of net assets | $ 8,634 | ||
Retained Earnings, Undistributed Earnings from Equity Method Investees | 8,005 | ||
Equity Method Investee [Member] | |||
Equity method investments, disclosures | |||
Related Party Transaction, Sales to Related Party | 17,736 | $ 16,084 | $ 14,471 |
Related Party Transaction, Payments Made to Related Party, | 294 | 396 | 516 |
Related Party Transaction, Purchases from Related Party | 579 | 505 | 496 |
Related Party Transaction, Net Receivables Due from Related Party | 1,527 | 1,191 | |
Dividends received from equity method investees | $ 672 | $ 634 | $ 823 |
CCEP | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 19% | ||
Monster Beverage Corporation | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 20% | ||
AC Bebidas | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 20% | ||
Coca-Cola FEMSA | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 28% | ||
Coca-Cola Hellenic | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 21% | ||
Coca-Cola Bottlers Japan | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 18% |
INTANGIBLE ASSETS - Indefinite-
INTANGIBLE ASSETS - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Indefinite-lived Intangible Assets | |||
Trademarks with indefinite lives | $ 14,349 | $ 14,214 | |
Goodwill | 18,358 | 18,782 | $ 19,363 |
Other Indefinite-lived intangible assets | 161 | 175 | |
Indefinite-lived intangible assets | $ 32,868 | $ 33,171 |
INTANGIBLE ASSETS - Carrying Va
INTANGIBLE ASSETS - Carrying Value of Goodwill by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill by operating segment | ||
Balance as of January 1 | $ 18,782 | $ 19,363 |
Effect of foreign currency translation | (193) | (603) |
Acquisitions | 4 | |
Purchase accounting adjustments | 23 | |
Divestitures, deconsolidations and other | (231) | (5) |
Balance as of December 31 | 18,358 | 18,782 |
EMEA | ||
Goodwill by operating segment | ||
Balance as of January 1 | 1,197 | 1,280 |
Effect of foreign currency translation | (44) | (83) |
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 1,153 | 1,197 |
Latin America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 203 | 200 |
Effect of foreign currency translation | 6 | 3 |
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 209 | 203 |
North America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 10,677 | 10,665 |
Effect of foreign currency translation | 0 | 0 |
Acquisitions | 0 | |
Purchase accounting adjustments | 12 | |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 10,677 | 10,677 |
Asia Pacific | ||
Goodwill by operating segment | ||
Balance as of January 1 | 412 | 422 |
Effect of foreign currency translation | (11) | (12) |
Acquisitions | 0 | |
Purchase accounting adjustments | 2 | |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 401 | 412 |
Global Ventures | ||
Goodwill by operating segment | ||
Balance as of January 1 | 2,708 | 2,976 |
Effect of foreign currency translation | 120 | (272) |
Acquisitions | 0 | |
Purchase accounting adjustments | 9 | |
Divestitures, deconsolidations and other | 0 | (5) |
Balance as of December 31 | 2,828 | 2,708 |
Bottling Investments | ||
Goodwill by operating segment | ||
Balance as of January 1 | 3,585 | 3,820 |
Effect of foreign currency translation | (264) | (239) |
Acquisitions | 4 | |
Purchase accounting adjustments | 0 | |
Divestitures, deconsolidations and other | (231) | 0 |
Balance as of December 31 | $ 3,090 | $ 3,585 |
INTANGIBLE ASSETS - Definite Li
INTANGIBLE ASSETS - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Definite-lived Intangible Assets | ||
Gross carrying amount | $ 562 | $ 707 |
Accumulated amortization | (207) | (247) |
Net definite-lived intangible assets | 355 | 460 |
Customer Relationships | ||
Definite-lived Intangible Assets | ||
Gross carrying amount | 309 | 354 |
Accumulated amortization | (118) | (109) |
Net definite-lived intangible assets | 191 | 245 |
Trademarks | ||
Definite-lived Intangible Assets | ||
Gross carrying amount | 70 | 147 |
Accumulated amortization | (30) | (84) |
Net definite-lived intangible assets | 40 | 63 |
Other Intangible Assets | ||
Definite-lived Intangible Assets | ||
Gross carrying amount | 183 | 206 |
Accumulated amortization | (59) | (54) |
Net definite-lived intangible assets | $ 124 | $ 152 |
INTANGIBLE ASSETS - Estimated A
INTANGIBLE ASSETS - Estimated Amortization Expense for the Next Five Years (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amortization Expense | |||
2024 | $ 61 | ||
2025 | 54 | ||
2026 | 42 | ||
2027 | 42 | ||
2028 | 34 | ||
Total amortization expense for intangible assets subject to amortization | $ 94 | $ 120 | $ 165 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable | $ 5,307 | $ 5,590 |
Accrued marketing expenses | 2,778 | 2,870 |
Accrued compensation | 1,087 | 1,394 |
Other accrued expenses | 6,577 | 5,631 |
Accounts payable and accrued expenses | 15,749 | 15,485 |
Liabilities Held for Sale | 160 | $ 719 |
Vietnam Bottling Operations | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Proceeds from Divestiture of Businesses | $ 823 |
SUPPLY CHAIN FINANCE PROGRAM (D
SUPPLY CHAIN FINANCE PROGRAM (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Text Block [Abstract] | ||
Supplier Finance Program, Obligation | $ 1,421 | $ 1,351 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable and accrued expenses | Accounts payable and accrued expenses |
LEASES - Lessee Operating Lease
LEASES - Lessee Operating Lease Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 1,328 | $ 1,406 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other Assets, Noncurrent | Other Assets, Noncurrent |
Operating Lease, Liability, Current | $ 361 | $ 341 |
Operating Lease, Liability, Current, Statement of Financial Position | Accounts payable and accrued expenses | Accounts payable and accrued expenses |
Operating Lease, Liability, Noncurrent | $ 1,001 | $ 1,113 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | Other noncurrent liabilities | Other noncurrent liabilities |
Operating Lease, Liability | $ 1,362 | $ 1,454 |
LEASES - Lessee Operating Lea_2
LEASES - Lessee Operating Lease Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term | 8 years |
Weighted-average discount rate | 3.40% |
LEASES - Lessee Operating Lea_3
LEASES - Lessee Operating Lease Liability Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
2024 | $ 395 | |
2025 | 254 | |
2026 | 197 | |
2027 | 153 | |
2028 | 111 | |
Thereafter | 412 | |
Total operating lease payments | 1,522 | |
Less: Imputed interest | 160 | |
Operating Lease, Liability | $ 1,362 | $ 1,454 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | $ 397 | $ 397 |
Operating Lease, Payments | 389 | 400 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 328 | $ 337 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 41 years |
DEBT AND BORROWING ARRANGEMEN_3
DEBT AND BORROWING ARRANGEMENTS - Components of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term debt | ||
Long-term Debt | $ 37,507 | $ 36,776 |
Fair Value Adjustments | $ (972) | $ (1,469) |
Average Rate | 3.40% | 2.30% |
Current maturities of long-term debt | $ 1,960 | $ 399 |
Long-term debt | 35,547 | 36,377 |
Long-term Debt, Fair Value | 33,445 | 32,698 |
U.S. dollar notes due 2024-2093 | ||
Long-term debt | ||
Long-term Debt | $ 21,982 | $ 21,966 |
Average Rate | 3.20% | 2.50% |
U.S. dollar debentures due 2023-2098 | ||
Long-term debt | ||
Long-term Debt | $ 788 | $ 891 |
Average Rate | 4.80% | 4.70% |
Australian dollar notes due 2024 | ||
Long-term debt | ||
Long-term Debt | $ 374 | $ 374 |
Average Rate | 2.70% | 2.70% |
Euro notes due 2024-2041 | ||
Long-term debt | ||
Long-term Debt | $ 12,888 | $ 12,485 |
Average Rate | 2.70% | 0.70% |
Swiss franc notes due 2028 | ||
Long-term debt | ||
Long-term Debt | $ 684 | $ 623 |
Average Rate | 6% | 3.20% |
Other, due through 2098 | ||
Long-term debt | ||
Long-term Debt | $ 1,763 | $ 1,906 |
Average Rate | 8.10% | 6.70% |
Other, due through 2098 | Bottling operations in Africa | ||
Long-term debt | ||
Long-term Debt | $ 1,211 | $ 1,368 |
DEBT AND BORROWING ARRANGEMEN_4
DEBT AND BORROWING ARRANGEMENTS - Schedule of Maturities of Long-Term Debt (Details ) $ in Millions | Dec. 31, 2023 USD ($) |
Maturities of Long-Term Debt | |
2024 | $ 1,960 |
2025 | 1,070 |
2026 | 1,810 |
2027 | 4,616 |
2028 | $ 2,770 |
DEBT AND BORROWING ARRANGEMEN_5
DEBT AND BORROWING ARRANGEMENTS - Short-Term Borrowings Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term Debt [Line Items] | ||
Commercial paper borrowings outstanding | $ 4,209 | $ 2,146 |
Weighted-average interest rates for commercial paper outstanding (as a percent) | 5.30% | 4.20% |
Other Short-term Borrowings | $ 348 | $ 227 |
Unused lines of Credit | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility | 6,159 | |
Lines of credit for general corporate purposes | $ 4,550 |
DEBT AND BORROWING ARRANGEMEN_6
DEBT AND BORROWING ARRANGEMENTS - Long-Term Debt Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | |
Long-term debt | ||||
Long-term Debt | $ 37,507 | $ 36,776 | ||
Issuances of loans, notes payable and long-term debt | 6,891 | 3,972 | $ 13,094 | |
Gains (Losses) on Extinguishment of Debt | (559) | |||
Reclassification of gain (loss) from AOCI for cash flow hedge related to debt extinguishment | (91) | |||
Total interest paid | $ 1,415 | $ 848 | 738 | |
Fixed interest rate debt with maturity dates ranging from 2023 to 2026 | ||||
Long-term debt | ||||
Extinguishment of long-term debt | $ 6,500 | € 2,430 | ||
Minimum | Fixed interest rate debt with maturity dates ranging from 2023 to 2026 | ||||
Long-term debt | ||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | 0.75% | ||
Maximum | Fixed interest rate debt with maturity dates ranging from 2023 to 2026 | ||||
Long-term debt | ||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.20% | 3.20% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 30, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2015 | |
Legal Contingencies | |||||
IRS Claim | $ 16,000 | ||||
Estimated Tax Liability | $ 439 | $ 438 | |||
Increase in Effective Tax Rate | 3.50% | ||||
Potential Aggregate Tax Liability- Brazil | $ 5,800 | ||||
Risk Management Programs | |||||
Self Insurance Reserve | 197 | $ 199 | |||
Guarantees of indebtedness owed by third parties | |||||
Guarantees | |||||
Guarantees of indebtedness owed by third parties | 633 | ||||
VIEs maximum exposures to loss | $ 87 | ||||
Tax Years 2007-2009 | |||||
Legal Contingencies | |||||
IRS Claim | $ 3,300 | ||||
IRS Notice Income Reallocation | $ 9,000 | ||||
Net Increase (Decrease) in Sales and Transfer Prices and Production Costs | $ 385 | ||||
IRS Amended Claim | 135 | ||||
IRS Amended Claim Related to Mexico Licensee | $ 138 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Weighted-average fair value of options granted and the weighted-average assumptions used in the Black Scholes Merton option pricing model for such grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average assumptions used in the Black Scholes Merton option pricing model | |||
Fair value of options at grant date (in dollars per share) | $ 9.84 | $ 8.23 | $ 5.08 |
Dividend yield (as a percent) | 3% | 2.80% | 3.30% |
Expected volatility (as a percent) | 17.50% | 18% | 18% |
Risk-free interest rate (as a percent) | 4.10% | 1.90% | 0.90% |
Expected term of the option (in years) | 6 years | 6 years | 6 years |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation disclosure | |||
Granted (in shares) | 3 | ||
Exercised (in shares) | (14) | (22) | (19) |
Forfeited/expired (in shares) | (1) | ||
Outstanding on December 31 | 47 | 59 | |
Expected to vest | 46 | ||
Exercisable on December 31, 2023 | 36 | ||
Granted, Weighted-Average Exercise Price (in dollars per share) | $ 60.05 | ||
Exercised, Weighted-Average Exercise Price (in dollars per share) | 39.47 | ||
Forfeited/expired, Weighted-Average Exercise Price (in dollars per share) | 55.58 | ||
Outstanding on December 31, Weighted-Average Exercise Price (in dollars per share) | 48.52 | $ 45.93 | |
Expected to vest, Weighted-Average Exercise Price (in dollars per share) | 48.38 | ||
Exercisable on December 31, weighted average exercise price (in dollars per share) | $ 45.55 | ||
Outstanding on December 31, Weighted-Average Remaining Contractual Life (in years) | 4 years 8 months 12 days | ||
Expected to Vest, Weighted Average Remaining Contractual Life (in years) | 4 years 7 months 6 days | ||
Exercisable on December 31, Weighted-Average Remaining Contractual Life (in years) | 3 years 8 months 12 days | ||
Outstanding on December 31, Aggregate Intrinsic Value (in dollars) | $ 507 | ||
Expected to vest, Aggregate Intrinsic Value (in dollars) | 506 | ||
Exercisable on December 31, Aggregate Intrinsic Value (in dollars) | $ 483 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of information about outstanding nonvested performance share units based on target award levels (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary disclosures | |||
Outstanding performance share units at the Threshold Award Level (in shares) | 1,139 | ||
Outstanding performance share units at the Maximum Award Level (in shares) | 6,781 | ||
Performance Shares | |||
Summary disclosures | |||
Nonvested Stock Units | 2,854 | 3,706 | |
Weighted Average Grant Date Fair Value | $ 58.48 | $ 52.94 | |
Granted | 1,323 | ||
Weighted Average Grant Date Fair Value | $ 56.63 | $ 59.61 | $ 47.04 |
Vested | (1,831) | ||
Weighted Average Grant Date Fair Value | $ 46.65 | ||
Forfeited | (344) | ||
Weighted Average Grant Date Fair Value | $ 54.65 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Summary of information about vested performance share units based on the certified award level (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Performance Share Units 2020-2022 Award | |
Stock-based compensation awards | |
Certified | shares | 3,029 |
Weighted Average Grant Date Fair Value | $ / shares | $ 57 |
Released during 2023 | shares | (3,011) |
Weighted Average Grant Date Fair Value | $ / shares | $ 57.43 |
Forfeited during 2023 | shares | (18) |
Weighted-Average Grant Date Fair Value | $ / shares | $ 57 |
Performance Share Units 2021-2022 Emerging Stronger Award | |
Stock-based compensation awards | |
Certified | shares | 1,099 |
Weighted Average Grant Date Fair Value | $ / shares | $ 48.36 |
Released during 2023 | shares | (1,091) |
Weighted Average Grant Date Fair Value | $ / shares | $ 48.36 |
Forfeited during 2023 | shares | (8) |
Weighted-Average Grant Date Fair Value | $ / shares | $ 48.36 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Summary of information about outstanding nonvested time-based restricted stock and restricted stock units (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary disclosures | ||
Nonvested Stock Units | 3,493 | 3,030 |
Weighted Average Grant Date Fair Value | $ 52.91 | $ 52.35 |
Granted | 1,645 | |
Weighted Average Grant Date Fair Value | $ 54.70 | |
Vested and released | (865) | |
Weighted Average Grant Date Fair Value | $ 54.66 | |
Forfeited | (317) | |
Weighted-Average Grant Date Fair Value | $ 52.43 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation awards | |||
Total stock-based compensation expense | $ 251 | $ 361 | $ 337 |
Total income tax benefit recognized in consolidated statements of income for share-based compensation arrangements | 40 | 55 | 60 |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 267 | ||
Weighted-average period over which the total unrecognized compensation cost is expected to be recognized (in years) | 1 year 8 months 12 days | ||
Vesting period of stock-based awards (in years) | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Total intrinsic value of options exercised | $ 268 | $ 534 | $ 358 |
Exercised (in shares) | (14,000) | (22,000) | (19,000) |
Selling, General and Administrative Expenses | |||
Stock-based compensation awards | |||
Total stock-based compensation expense | $ 254 | $ 356 | |
Other Operating Income (Expense) | |||
Stock-based compensation awards | |||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ 5 | ||
Accrual Adjustment | $ (3) | ||
2014 Equity Plan | |||
Stock-based compensation awards | |||
Common stock was approved to be issued or transferred through the grant of stock options (in shares) | 500,000 | ||
Number of Shares Available for Grant (in shares) | 284,000 | ||
Options Plan Approved prior to 2014 | |||
Stock-based compensation awards | |||
Number of Shares Available for Grant (in shares) | 3,000 | ||
Performance Shares | |||
Stock-based compensation awards | |||
Nonvested Stock Units | 2,854 | 3,706 | |
Weighted Average Grant Date Fair Value | $ 56.63 | $ 59.61 | $ 47.04 |
Total intrinsic value of performance share units that were released | $ 244 | $ 125 | $ 237 |
Performance Shares | Performance Period 2022 to 2024 | |||
Stock-based compensation awards | |||
Nonvested Stock Units | 1,567 | ||
Performance Shares | Performance Period 2023 to 2025 | |||
Stock-based compensation awards | |||
Nonvested Stock Units | 1,287 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes in benefit obligations and the fair value of plan assets for our pension and other postretirement benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension plans | |||
Changes in benefit obligations | |||
Benefit obligation at January 1 | $ 6,376 | $ 8,580 | |
Service cost | 94 | 93 | $ 97 |
Interest cost | 322 | 232 | 183 |
Participant Contributions | 5 | 5 | |
Foreign currency exchange rate changes | 27 | (152) | |
Amendments | 0 | 9 | |
Net actuarial loss (gain) | 375 | (1,891) | |
Benefits Paid | (369) | (500) | |
Divestitures | 0 | (2) | |
Settlements | (287) | (26) | |
Curtailments | 0 | (1) | |
Special termination benefits | 1 | 1 | 3 |
Other | 0 | 28 | |
Benefit obligation at December 31 | 6,544 | 6,376 | 8,580 |
Accumulated Benefit Obligation | 6,463 | 6,307 | |
Fair value of plan assets | |||
Fair value of plan assets at January 1 | 7,158 | 8,905 | |
Actual return on plan assets | 537 | (1,101) | |
Employer contributions | 44 | 33 | |
Participant Contributions | 5 | 5 | |
Foreign currency exchange rate changes | 76 | (258) | |
Benefits Paid | (300) | (427) | |
Settlements | (260) | (26) | |
Other | 0 | 27 | |
Fair value of plan assets at December 31 | 7,260 | 7,158 | 8,905 |
Net liability recognized | 716 | 782 | |
Settlement charges (credits) | 81 | (1) | 117 |
Pension plans | Defined Benefit Plan, Funded Plan | |||
Fair value of plan assets | |||
Settlements | (259) | ||
Settlement charges (credits) | 76 | ||
Pension plans | Change in Assumptions for Defined Benefit Plans | |||
Changes in benefit obligations | |||
Net actuarial loss (gain) | 129 | (1,231) | |
Other postretirement benefit plans | |||
Changes in benefit obligations | |||
Benefit obligation at January 1 | 495 | 696 | |
Service cost | 4 | 7 | 9 |
Interest cost | 27 | 17 | 15 |
Participant Contributions | 9 | 11 | |
Foreign currency exchange rate changes | (4) | (4) | |
Amendments | 1 | 0 | |
Net actuarial loss (gain) | 14 | (175) | |
Benefits Paid | (62) | (57) | |
Divestitures | 0 | 0 | |
Settlements | (187) | 0 | |
Curtailments | 0 | 0 | |
Special termination benefits | 0 | 0 | 0 |
Other | 0 | 0 | |
Benefit obligation at December 31 | 297 | 495 | 696 |
Fair value of plan assets | |||
Fair value of plan assets at January 1 | 373 | 419 | |
Actual return on plan assets | 17 | (55) | |
Employer contributions | 0 | 0 | |
Participant Contributions | 7 | 9 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits Paid | (34) | 0 | |
Settlements | (187) | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at December 31 | 176 | 373 | 419 |
Net liability recognized | (121) | (122) | |
Settlement charges (credits) | $ (14) | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Pension and other benefit amounts recognized in consolidated balance sheets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension plans | ||
Pension and other benefit amounts recognized in our consolidated balance sheets | ||
Noncurrent asset | $ 1,543 | $ 1,558 |
Accounts payable and accrued expenses | (67) | (70) |
Other noncurrent liabilities | (760) | (706) |
Net asset (liability) recognized | 716 | 782 |
Other postretirement benefit plans | ||
Pension and other benefit amounts recognized in our consolidated balance sheets | ||
Noncurrent asset | 0 | 44 |
Accounts payable and accrued expenses | (4) | (17) |
Other noncurrent liabilities | (117) | (149) |
Net asset (liability) recognized | $ (121) | $ (122) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Schedule of pension plans with projected benefit obligation in excess of fair value of plan assets (Details) - Pension plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated benefit obligations in excess of the fair value of plan assets | ||
Projected Benefit Obligation | $ 5,270 | $ 972 |
Fair Value of Plan Assets | $ 4,443 | $ 197 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Accumulated benefit obligations in excess of fair value of plan assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Pension plans | ||
Accumulated benefit obligations in excess of the fair value of plan assets | ||
Accumulated Benefit Obligations | $ 5,165 | $ 880 |
Fair value of plan assets | 4,379 | 138 |
Other postretirement benefit plans | ||
Accumulated benefit obligations in excess of the fair value of plan assets | ||
Accumulated Benefit Obligations | 297 | 166 |
Fair value of plan assets | $ 176 | $ 0 |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Total pension assets for U.S. and non-U.S. plans (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | $ 4,056 | $ 4,336 |
U.S. Pension Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 203 | 473 |
U.S. Pension Plans | Equity Securities, US based companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 457 | 509 |
U.S. Pension Plans | Equity Securities, International based companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 208 | 285 |
U.S. Pension Plans | Government bonds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 848 | 793 |
U.S. Pension Plans | Corporate bonds and debt securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 426 | 384 |
U.S. Pension Plans | Mutual, pooled and commingled funds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 243 | 304 |
U.S. Pension Plans | Hedge funds/limited partnerships | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 1,038 | 915 |
U.S. Pension Plans | Real estate | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 367 | 417 |
U.S. Pension Plans | Derivative financial instruments | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 0 | 0 |
U.S. Pension Plans | Other | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 266 | 256 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 3,204 | 2,822 |
Non-U.S. Pension Plans | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 172 | 162 |
Non-U.S. Pension Plans | Equity Securities, US based companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 721 | 679 |
Non-U.S. Pension Plans | Equity Securities, International based companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 713 | 654 |
Non-U.S. Pension Plans | Government bonds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 538 | 445 |
Non-U.S. Pension Plans | Corporate bonds and debt securities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 153 | 115 |
Non-U.S. Pension Plans | Mutual, pooled and commingled funds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 535 | 463 |
Non-U.S. Pension Plans | Hedge funds/limited partnerships | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 19 | 21 |
Non-U.S. Pension Plans | Real estate | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 9 | 7 |
Non-U.S. Pension Plans | Derivative financial instruments | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | 33 | (14) |
Non-U.S. Pension Plans | Other | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Plan Assets | $ 311 | $ 290 |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Other postretirement benefit plan assets (Details) - Other postretirement benefit plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | $ 176 | $ 373 | $ 419 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 10 | 43 | |
Equity Securities, US based companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 73 | 133 | |
Equity Securities, International based companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 4 | 4 | |
Government bonds | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 14 | 12 | |
Corporate bonds and debt securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 7 | 71 | |
Mutual, pooled and commingled funds | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 39 | 86 | |
Hedge funds/limited partnerships | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 18 | 14 | |
Real estate | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | 6 | 6 | |
Other | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets | $ 5 | $ 4 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Net periodic benefit cost for pension and other postretirement benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net periodic pension and other postretirement benefit cost | |||
Corridor Approach for Amortizing Actuarial Gains and Losses | 10% | ||
Pension plans | |||
Net periodic pension and other postretirement benefit cost | |||
Service cost | $ 94 | $ 93 | $ 97 |
Interest cost | 322 | 232 | 183 |
Expected Return on Plan Assets | (475) | (558) | (606) |
Amortization of prior service cost (credit) | 1 | 0 | 0 |
Amortization of net actuarial loss (gain) | 96 | 109 | 146 |
Net periodic benefit cost (income) | 38 | (124) | (180) |
Settlement charges (credits) | 81 | (1) | 117 |
Curtailment credits | 0 | (1) | (1) |
Special termination benefits | 1 | 1 | 3 |
Other | 0 | 1 | 0 |
Total cost (income) recognized in the statement of income | 120 | (124) | (61) |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 260 | 26 | |
Pension plans | Defined Benefit Plan, Funded Plan | |||
Net periodic pension and other postretirement benefit cost | |||
Settlement charges (credits) | 76 | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 259 | ||
Other postretirement benefit plans | |||
Net periodic pension and other postretirement benefit cost | |||
Service cost | 4 | 7 | 9 |
Interest cost | 27 | 17 | 15 |
Expected Return on Plan Assets | (14) | (16) | (17) |
Amortization of prior service cost (credit) | (3) | (3) | (2) |
Amortization of net actuarial loss (gain) | (5) | 0 | 4 |
Net periodic benefit cost (income) | 9 | 5 | 9 |
Settlement charges (credits) | (14) | 0 | 0 |
Curtailment credits | 0 | 0 | (1) |
Special termination benefits | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Total cost (income) recognized in the statement of income | (5) | 5 | $ 8 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 187 | $ 0 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes and amounts in AOCI for pension and other postretirement benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension plans | ||
Net periodic pension and other postretirement benefit cost | ||
Prior Service Credit (Cost) | $ (17) | $ (17) |
Net actuarial gain (loss) | (1,889) | (1,738) |
Changes in AOCI for our benefit plans, pretax | ||
Beginning balance in AOCI | (1,755) | (2,125) |
Recognized prior service cost (credit) | 1 | 0 |
Recognized net actuarial loss (gain) | 177 | 107 |
Prior service cost arising during the year | 0 | (9) |
Net actuarial gain (loss) occurring during the year | (313) | 232 |
Net foreign currency translation adjustments | (16) | 40 |
Balance in AOCI | (1,906) | (1,755) |
Other postretirement benefit plans | ||
Net periodic pension and other postretirement benefit cost | ||
Prior Service Credit (Cost) | 20 | 24 |
Net actuarial gain (loss) | 41 | 71 |
Changes in AOCI for our benefit plans, pretax | ||
Beginning balance in AOCI | 95 | (4) |
Recognized prior service cost (credit) | (3) | (3) |
Recognized net actuarial loss (gain) | (19) | 0 |
Prior service cost arising during the year | (1) | 0 |
Net actuarial gain (loss) occurring during the year | (12) | 104 |
Net foreign currency translation adjustments | 1 | (2) |
Balance in AOCI | $ 61 | $ 95 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Certain weighted average assumptions used in computing the benefit obligations and net periodic benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension plans | |||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 5% | 5.50% | |
Interest Crediting Rate | 3.75% | 4% | |
Rate of increase in compensation levels (as a percent) | 4% | 3.75% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 5.50% | 3% | 2.50% |
Interest Crediting Rate | 4% | 3% | 3% |
Rate of increase in compensation levels (as a percent) | 3.75% | 3.75% | 3.75% |
Expected Long-term Rate of Return on Plan Assets | 6.75% | 7% | 7.25% |
Other postretirement benefit plans | |||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 6.25% | 6% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 6% | 3.25% | 2.75% |
Expected Long-term Rate of Return on Plan Assets | 3.75% | 4% | 4.25% |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assumed health care cost trend rates (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assumed health care cost trend rates | ||
Health care cost trend rate assumed for the next year (as a percent) | 8.50% | 8.25% |
Rate at which the cost trend rate is assumed to decline, the ultimate trend rate (as a percent) | 6% | 5.50% |
Year in which the rate reaches the ultimate trend rate | 2029 | 2030 |
PENSION AND OTHER POSTRETIRE_13
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Estimated future benefit payments for pension and other postretirement benefit plans (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Estimated future benefit payments for funded and unfunded plans | |
2024 | $ 703 |
2025 | 644 |
2026 | 638 |
2027 | 638 |
2028 | 512 |
2029-2033 | 2,520 |
Pension plans | |
Estimated future benefit payments for funded and unfunded plans | |
2024 | 654 |
2025 | 615 |
2026 | 611 |
2027 | 614 |
2028 | 489 |
2029-2033 | 2,421 |
Other postretirement benefit plans | |
Estimated future benefit payments for funded and unfunded plans | |
2024 | 49 |
2025 | 29 |
2026 | 27 |
2027 | 24 |
2028 | 23 |
2029-2033 | $ 99 |
PENSION AND OTHER POSTRETIRE_14
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) yr | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure | |||
Minimum Interest Crediting Rate | 3.80% | ||
Period of time current interest crediting rate will converge with ultimate interest crediting rate | yr | 10 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 47 | ||
Multiemployer Plan, Employer Contribution, Cost | $ 1 | $ 1 | $ 1 |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined benefit plan portion of projected pension benefit obligation percentage | 63% | ||
Defined Benefit Plan Portion of Projected Pension Plan Assets Percentage | 56% | ||
Maximum portion of plan assets for which an investment manager is responsible (as a percent) | 28% | ||
Rate of increase in compensation levels (as a percent) | 6.75% | ||
The 5-year annualized return on plan assets (as a percent) | 6.70% | ||
The 10-year annualized return on plan assets (as a percent) | 6.10% | ||
The 15-year annualized return on plan assets (as a percent) | 8.30% | ||
Annualized return on plan assets since inception (as a percent) | 9.90% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3% | ||
Company costs associated with defined contribution plans | $ 44 | 45 | 32 |
U.S. Pension Plans | Maximum | |||
Defined Benefit Plan Disclosure | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3.50% | ||
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 34% | ||
Defined Benefit Plan, Plan Assets, Target Allocation Percentage, European and Canadian | 66% | ||
Company costs associated with defined contribution plans | $ 82 | $ 79 | $ 79 |
Equity Securities, US based companies | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 18% | ||
Global equities | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 81% | ||
Emerging market equities | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 11% | ||
Domestic small- and mid-cap equities | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 8% | ||
Long-duration bonds | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 62% | ||
Multi-strategy alternative credit managers | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 38% | ||
Equity Securities, International based companies | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 2% | ||
Defined Benefit Plan, Plan Assets, Target Allocation Percentage, European and Canadian | 60% | ||
Fixed Income Funds | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 47% | ||
Fixed Income Funds | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 23% | ||
Defined Benefit Plan, Plan Assets, Target Allocation Percentage, European and Canadian | 29% | ||
Mutual, pooled and commingled funds | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40% | ||
Other | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% | ||
Defined Benefit Plan, Plan Assets, Target Allocation Percentage, European and Canadian | 11% | ||
Common Stock | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 9% | ||
Common Stock | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5% | ||
Alternative investments | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of income tax | |||
Income before income taxes, United States | $ 2,766 | $ 3,452 | $ 3,538 |
Income before income taxes, International | 10,186 | 8,234 | 8,887 |
Income Before Income Taxes | $ 12,952 | $ 11,686 | $ 12,425 |
INCOME TAXES - Schedule of In_2
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense (benefit) | |||
Current income tax expense (benefit), United States | $ 83 | $ 468 | $ 243 |
Deferred income tax expense (benefit), United States | (135) | (121) | 229 |
Current income tax expense (benefit), State and Local | 129 | 118 | 106 |
Deferred income tax expense (benefit), State and Local | (78) | (4) | (10) |
Current income tax expense (benefit), International | 2,039 | 1,651 | 1,378 |
Deferred income tax expense (benefit), International | 211 | 3 | 675 |
Current income tax expense (benefit), total | 2,251 | 2,237 | 1,727 |
Deferred income tax expense (benefit), total | $ (2) | $ (122) | 894 |
Deferred Other Tax Expense (Benefit) | $ 195 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Statutory U.S. Federal Tax Rate and Effective Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Statutory U.S. federal tax rate (as a percent) | 21% | 21% | 21% |
State and local income taxes - net of federal benefit (as a percent) | 1.10% | 1.40% | 1.10% |
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (as a percent) | (0.30%) | (0.60%) | 2.30% |
Equity income or loss (as a percent) | (2.10%) | (2.70%) | (2.00%) |
Excess tax benefits on stock-based compensation (as a percent) | (0.30%) | (0.70%) | (0.50%) |
Other - Net (as a percent) | (2.00%) | (0.30%) | (0.80%) |
Effective Tax Rate (as a percent) | 17.40% | 18.10% | 21.10% |
Tax Contingency, Foreign, Amount | $ 375 | ||
Tax Contingency, Foreign, Percent | 3% | ||
Other Adjustments, Amount | $ (118) | $ (14) | |
Tax Contingency, Other, Percent | 0.90% | 1.50% | |
Philippines and Bangladesh Bottling Operations | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Other Adjustments, Amount | $ (88) | ||
Tax Contingency, Other, Percent | 0.70% | ||
BodyArmor | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 834 |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Gross balance of unrecognized tax benefit | |||
Beginning balance of unrecognized tax benefits | $ 926 | $ 906 | $ 915 |
Increase related to prior period tax positions | 2 | 6 | 9 |
Decrease related to prior period tax positions | (25) | 0 | (50) |
Increase related to current period tax positions | 32 | 38 | 37 |
Decrease related to settlements with taxing authorities | 0 | (2) | (4) |
Decrease due to lapse of the applicable statute of limitations | (2) | 0 | 0 |
Effect of foreign currency translation | (4) | (22) | (1) |
Ending balance of unrecognized tax benefits | $ 929 | $ 926 | $ 906 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Property, plant and equipment | $ 25 | $ 40 |
Trademarks and other intangible assets | 1,414 | 1,617 |
Equity method investments (including foreign currency translation adjustments) | 239 | 366 |
Derivative financial instruments | 156 | 207 |
Other liabilities | 1,709 | 1,503 |
Benefit plans | 554 | 522 |
Net operating/capital loss carryforwards | 273 | 248 |
Other | 445 | 530 |
Gross deferred tax assets | 4,815 | 5,033 |
Valuation allowances | (396) | (424) |
Total deferred tax assets | 4,419 | 4,609 |
Deferred tax liabilities: | ||
Property, Plant and Equipment | (748) | (741) |
Trademarks and Other Intangible Assets | (1,917) | (1,843) |
Equity Method Investments (including net foreign currency translation adjustments) | (1,633) | (1,632) |
Derivative financial instruments | (282) | (488) |
Other Liabilities | (330) | (372) |
Benefit Plans | (428) | (490) |
Other | (159) | (211) |
Total Deferred Tax Liabilities | (5,497) | (5,777) |
Net Deferred Tax Assets (Liabilities) | $ (1,078) | $ (1,168) |
INCOME TAXES - Summary of Valua
INCOME TAXES - Summary of Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax asset valuation allowances | |||
Balance at beginning of year | $ 424 | ||
Balance at end of year | 396 | $ 424 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
Deferred tax asset valuation allowances | |||
Balance at beginning of year | 424 | 401 | $ 406 |
Additions | 28 | 47 | 25 |
Deductions | (56) | (24) | (30) |
Balance at end of year | $ 396 | $ 424 | $ 401 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income tax | ||||
Income tax payments | $ 2,580 | $ 2,403 | $ 2,168 | |
One-time transition tax required by the Tax Reform Act | 723 | 385 | 385 | |
Tax Incentive Grants | 332 | 406 | 381 | |
Undistributed Earnings of Foreign Subsidiaries | 8,500 | |||
Unrecognized Tax Benefits | 929 | 926 | 906 | $ 915 |
Impact of unrecognized tax benefits on effective tax rate if Company were to prevail on all uncertain tax positions | 632 | |||
Alternative jurisdictional tax benefits if tax positions do not prevail | 297 | |||
Interest and penalties accrued | 544 | 496 | 453 | |
Interest and penalties expense or (benefit) | 48 | 43 | 62 | |
Net deferred tax assets or (liabilities) located in countries outside the United States | 273 | 398 | ||
Loss carryforwards | 1,705 | |||
Loss carryforwards expiring within next five years | 383 | |||
Net increase or (decrease) in valuation allowances | $ (28) | $ 23 | $ (5) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Attributable to Shareholders (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
AOCI attributable to the shareowners of The Coca-Cola Company | ||
Accumulated other comprehensive income (loss) | $ (14,275) | $ (14,895) |
Total Equity Attributable To Shareowners Of The Coca-Cola Company | ||
AOCI attributable to the shareowners of The Coca-Cola Company | ||
Net foreign currency translation adjustments | (12,726) | (13,609) |
Accumulated net gains (losses) on derivatives | (154) | 24 |
Unrealized net gains (losses) on available-for-sale debt securities | (1) | (25) |
Adjustments to pension and other postretirement benefit liabilities | (1,394) | (1,285) |
Accumulated other comprehensive income (loss) | $ (14,275) | $ (14,895) |
OTHER COMPREHENSIVE INCOME - To
OTHER COMPREHENSIVE INCOME - Total Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other comprehensive income | |||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 10,714 | $ 9,542 | $ 9,771 |
Net foreign currency transaction adjustments | 883 | (1,014) | (567) |
Net gains (losses) on derivatives | (178) | 4 | 214 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 24 | 37 | (90) |
Net change in pension and other postretirement benefit liabilities | (109) | 408 | 714 |
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | 11,334 | 8,977 | 10,042 |
Net Income (Loss) Attributable to Noncontrolling Interest | (11) | 29 | 33 |
Net foreign currency translation adjustments | (147) | ||
Net gains (losses) on derivatives attributable to noncontrolling interests | 0 | ||
Net changes in unrealized gains (losses) on available-for-sale debt securities attributable to noncontrolling interests | 0 | ||
Net change in pension and other postretirement benefit liabilities attributable to noncontrolling interests | 0 | ||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (158) | (89) | (101) |
Consolidated Net Income | 10,703 | 9,571 | 9,804 |
Net foreign currency translation adjustments | 736 | (1,132) | (699) |
Net gains (losses) on derivatives | (178) | 4 | 214 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 24 | 37 | (90) |
Net change in pension and other postretirement benefit liabilities | (109) | 408 | 712 |
Total Comprehensive Income | $ 11,176 | $ 8,888 | $ 9,941 |
OTHER COMPREHENSIVE INCOME - OC
OTHER COMPREHENSIVE INCOME - OCI Attributable to Shareholders (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign currency translation adjustments: | |||
Translation adjustments arising during the year | $ 366 | $ (125) | $ 263 |
Reclassification adjustments recognized in net income | 223 | 200 | 257 |
Gains (losses) on intra-entity transactions that are of a long-term investment nature | 712 | (1,419) | (1,798) |
Gains (losses) on net investment hedges arising during the year | (382) | 741 | 918 |
Reclassification adjustments for net investment hedges recognized in net income | 4 | ||
Net foreign currency translation adjustments | 919 | (603) | (356) |
Derivatives: | |||
Gains (losses) arising during the year | (194) | 165 | 160 |
Reclassification adjustments recognized in net income | (10) | (161) | 124 |
Net gains (losses) on derivatives | (204) | 4 | 284 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 28 | (69) | (141) |
Reclassification adjustments recognized in net income | 7 | 131 | 4 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 35 | 62 | (137) |
Pension and other benefit liabilities: | |||
Net pension and other postretirement benefit liabilities arising during the year | (314) | 420 | 653 |
Reclassification adjustments recognized in net income | 157 | 104 | 265 |
Net change in pension and other benefits liabilities | (157) | 524 | 918 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent, Total | 593 | (13) | 709 |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the year | (131) | (226) | 19 |
Reclassification adjustments recognized in the period | 0 | 0 | 0 |
Gains (losses) on intra-entity transactions that are of a long-term investment nature | 0 | 0 | 0 |
Gains (losses) on net investment hedges arising during the period | 95 | (185) | (230) |
Reclassification adjustments for net investment hedges recognized in net income | 0 | ||
Net foreign currency translation adjustment | (36) | (411) | (211) |
Derivatives: | |||
Gains (losses) arising during the period | 23 | (40) | (41) |
Derivatives reclassification adjustments recognized in net income | 3 | 40 | (29) |
Net gains (losses) on derivatives | 26 | 0 | (70) |
Availiable-for-sale securities: | |||
Unrealized gains (losses) arising during the year | (10) | 4 | 48 |
Reclassification adjustments recognized in net income | (1) | (29) | (1) |
Net change in unrealized gains (losses) on available-for-sale debt securities | (11) | (25) | 47 |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the year | 80 | (90) | (138) |
Reclassification adjustments recognized in net income | (32) | (26) | (66) |
Net change in pension and other benefit liabilities | 48 | (116) | (204) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 27 | (552) | (438) |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the year | 235 | (351) | 282 |
Reclassification adjustments recognized in net income | 223 | 200 | 257 |
Gains (losses) on intra-entity transactions that are of a long-term investment nature | 712 | (1,419) | (1,798) |
Gains (losses) on net investment hedges arising during the year | (287) | 556 | 688 |
Reclassification adjustments for net investment hedges recognized in net income | 4 | ||
Net foreign currency transaction adjustments | 883 | (1,014) | (567) |
Derivatives: | |||
Gains (losses) arising during the period | (171) | 125 | 119 |
Reclassification adjustments recognized in net income | (7) | (121) | 95 |
Net gains (losses) on derivatives | (178) | 4 | 214 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | 18 | (65) | (93) |
Reclassification adjustments recognized in net income | 6 | 102 | 3 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 24 | 37 | (90) |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the period | (234) | 330 | 515 |
Reclassification adjustments recognized in net income | 125 | 78 | 199 |
Net change in pension and other postretirement benefit liabilities | (109) | 408 | 714 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 620 | $ (565) | $ 271 |
OTHER COMPREHENSIVE INCOME - Ad
OTHER COMPREHENSIVE INCOME - Adjustment Reclassified to Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income, before tax | $ 223 | $ 200 | $ 257 |
Reclassification adjustments recognized in the period, tax | 0 | 0 | 0 |
Reclassification adjustments recognized in net income | 223 | 200 | 257 |
Reclassification adjustments recognized in net income, before tax | (10) | (161) | 124 |
Derivatives reclassification adjustments recognized in net income, tax | 3 | 40 | (29) |
Reclassification adjustments recognized in net income | (7) | (121) | 95 |
Reclassification adjustments recognized in net income, before tax | 7 | 131 | 4 |
Reclassification adjustments recognized in net income, tax | (1) | (29) | (1) |
Reclassification adjustments recognized in net income | 6 | 102 | 3 |
Reclassification adjustments recognized in net income | 157 | 104 | 265 |
Reclassification adjustments recognized in net income, tax | (32) | (26) | (66) |
Reclassification adjustments recognized in net income | 125 | $ 78 | $ 199 |
Other income (loss) — net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income, before tax | 223 | ||
Reclassification adjustments recognized in net income, before tax | (17) | ||
Reclassification adjustments recognized in net income, before tax | 7 | ||
Recognized net actuarial loss (gain) | 91 | ||
Recognized prior service cost (credit) | (2) | ||
Other income (loss) — net | Settlement charges (credits) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income | 67 | ||
Other income (loss) — net | Divestitures, deconsolidations and other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income | 1 | ||
Net operating revenues | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income, before tax | 3 | ||
Interest expense | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustments recognized in net income, before tax | $ 4 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | $ 2,006 | $ 2,070 |
Total debt securities | 1,175 | 983 |
Derivatives | 53 | 14 |
Total assets | 3,234 | 3,067 |
Contingent Consideration Liability | 3,017 | 1,590 |
Derivatives | 192 | 288 |
Total liabilities | 3,209 | 1,878 |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 4 | |
Derivative Collateral, Right to Reclaim Cash | $ 1,039 | $ 1,447 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other noncurrent liabilities | Other noncurrent liabilities |
fairlife | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Payments for (Proceeds from) Previous Acquisition | $ 275 | |
Netting Adjustment | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 0 | $ 0 |
Total debt securities | 0 | 0 |
Derivatives | (222) | (227) |
Total assets | (222) | (227) |
Contingent Consideration Liability | 0 | 0 |
Derivatives | (1,256) | (1,678) |
Total liabilities | (1,256) | (1,678) |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 1,727 | 1,801 |
Total debt securities | 0 | 0 |
Derivatives | 0 | 2 |
Total assets | 1,727 | 1,803 |
Contingent Consideration Liability | 0 | 0 |
Derivatives | 3 | 4 |
Total liabilities | 3 | 4 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 188 | 169 |
Total debt securities | 1,172 | 975 |
Derivatives | 275 | 239 |
Total assets | 1,635 | 1,383 |
Contingent Consideration Liability | 0 | 0 |
Derivatives | 1,445 | 1,962 |
Total liabilities | 1,445 | 1,962 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 6 | 15 |
Total debt securities | 3 | 8 |
Derivatives | 0 | 0 |
Total assets | 9 | 23 |
Contingent Consideration Liability | 3,017 | 1,590 |
Derivatives | 0 | 0 |
Total liabilities | 3,017 | 1,590 |
Other | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 85 | 85 |
Total debt securities | 0 | 0 |
Derivatives | 0 | 0 |
Total assets | 85 | 85 |
Contingent Consideration Liability | 0 | 0 |
Derivatives | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Ass_2
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets measured at fair value on a nonrecurring basis | |||
Asset Impairment Charges | $ 46 | $ 0 | |
Equity Method Investment, Other than Temporary Impairment | 39 | 96 | |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 57 | $ 78 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | (24) | |
Nonrecurring gain (Loss) fair value adjustment | 85 | 177 | |
Asia Pacific | |||
Assets measured at fair value on a nonrecurring basis | |||
Asset Impairment Charges | 25 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 57 | ||
North America | |||
Assets measured at fair value on a nonrecurring basis | |||
Asset Impairment Charges | $ 21 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Levels Within the Fair Value Hierarchy for Pension Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | $ 7,260 | $ 7,158 | $ 8,905 |
Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 375 | 635 | |
Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,178 | 1,188 | |
Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 921 | 939 | |
Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,386 | 1,238 | |
Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 579 | 499 | |
Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 778 | 767 | |
Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,057 | 936 | |
Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 376 | 424 | |
Derivative financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 33 | (14) | |
Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 577 | 546 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 2,334 | 2,349 | |
Level 1 | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 163 | 146 | |
Level 1 | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,148 | 1,157 | |
Level 1 | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 904 | 920 | |
Level 1 | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 107 | 91 | |
Level 1 | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 12 | 35 | |
Level 1 | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Derivative financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 2,348 | 2,316 | |
Level 2 | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 212 | 489 | |
Level 2 | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 7 | |
Level 2 | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 15 | 16 | |
Level 2 | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,279 | 1,147 | |
Level 2 | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 552 | 469 | |
Level 2 | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 257 | 202 | |
Level 2 | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Derivative financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 33 | (14) | |
Level 2 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 382 | 357 | $ 339 |
Level 3 | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 30 | 24 | |
Level 3 | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 2 | 3 | |
Level 3 | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 27 | 30 | |
Level 3 | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Derivative financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 3 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 323 | 300 | |
Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 2,196 | 2,136 | |
Other | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 509 | 530 | |
Other | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 1,057 | 936 | |
Other | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 376 | 424 | |
Other | Derivative financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | $ 254 | $ 246 |
FAIR VALUE MEASUREMENTS - Recon
FAIR VALUE MEASUREMENTS - Reconciliation of Beginning and Ending Balance of Level 3 Assets for US and Non-US Pension Plans (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | $ 7,260 | $ 7,158 | $ 8,905 |
Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 577 | 546 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Actual return on plan assets | 7 | (6) | |
Purchases, sales and settlements — net | 6 | 3 | |
Transfers into Level 3 — net | 4 | 9 | |
Other | 27 | ||
Net foreign currency translation adjustments | 8 | (15) | |
Defined Benefit Plan, Plan Assets | 382 | 357 | 339 |
Level 3 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 32 | 27 | 27 |
Actual return on plan assets | 1 | (12) | |
Purchases, sales and settlements — net | 0 | (1) | |
Transfers into Level 3 — net | 4 | 13 | |
Other | 0 | ||
Net foreign currency translation adjustments | 0 | 0 | |
Level 3 | Fixed Income Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 27 | 30 | 29 |
Actual return on plan assets | (2) | 1 | |
Purchases, sales and settlements — net | (1) | 4 | |
Transfers into Level 3 — net | 0 | (4) | |
Other | 0 | ||
Net foreign currency translation adjustments | 0 | 0 | |
Level 3 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 323 | 300 | $ 283 |
Actual return on plan assets | 8 | 5 | |
Purchases, sales and settlements — net | 7 | 0 | |
Transfers into Level 3 — net | 0 | 0 | |
Other | 27 | ||
Net foreign currency translation adjustments | 8 | (15) | |
Defined Benefit Plan, Plan Assets | $ 323 | $ 300 |
FAIR VALUE MEASUREMENTS - Lev_2
FAIR VALUE MEASUREMENTS - Levels Within the Fair Value Hierarchy for Postretirement Benefit Plan Assets (Details) - Other Postretirement Benefit Plans - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | $ 176 | $ 373 | $ 419 |
Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 10 | 43 | |
Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 73 | 133 | |
Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 4 | 4 | |
Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 14 | 12 | |
Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 7 | 71 | |
Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 39 | 86 | |
Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 18 | 14 | |
Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 6 | 6 | |
Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 5 | 4 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 83 | 172 | |
Level 1 | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 6 | 35 | |
Level 1 | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 73 | 133 | |
Level 1 | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 4 | 4 | |
Level 1 | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 1 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 62 | 174 | |
Level 2 | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 4 | 8 | |
Level 2 | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 14 | 12 | |
Level 2 | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 7 | 71 | |
Level 2 | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 37 | 83 | |
Level 2 | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Level 2 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 31 | 27 | |
Other | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Equity Securities, US based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Equity Securities, International based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 0 | 0 | |
Other | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 2 | 3 | |
Other | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 18 | 14 | |
Other | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | 6 | 6 | |
Other | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Plan Assets | $ 5 | $ 4 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Fair Value Disclosures [Abstract] | ||
Long-term Debt | $ 37,507 | $ 36,776 |
Long-term Debt, Fair Value | $ 33,445 | $ 32,698 |
SIGNIFICANT OPERATING AND NON_2
SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Operating Charges | |||
Other operating charges | $ 1,951 | $ 1,215 | $ 846 |
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 57 | 78 |
Litigation Settlement, Expense | 8 | 15 | |
Interest Expense [Abstract] | |||
Charges related to debt extinguishment | 650 | ||
Equity Income (Loss) - Net | |||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 159 | 34 | 13 |
Other Income (Loss) - Net | |||
Debt and Equity Securities, Gain (Loss) | 289 | (371) | 467 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | 114 | |
Equity Method Investment, Other than Temporary Impairment | 39 | 96 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | (24) | |
Pension and other postretirement benefit plan settlement charges | 67 | ||
Asia Pacific | |||
Other Operating Charges | |||
Impairment of Intangible Assets (Excluding Goodwill) | 57 | ||
Business Exit Costs | 35 | ||
Equity Income (Loss) - Net | |||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 146 | ||
North America | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 27 | 38 | |
Business Exit Costs | 50 | 34 | 316 |
fairlife | |||
Other Operating Charges | |||
Charges related to the remeasurement of contingent consideration liability | 1,702 | 1,000 | 369 |
BodyArmor | |||
Other Operating Charges | |||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | (15) | (38) | |
Business Acquisition, Transaction Costs | 119 | ||
Other Income (Loss) - Net | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 834 | ||
BodyArmor | North America | |||
Other Operating Charges | |||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | 21 | ||
Business Acquisition, Transaction Costs | 21 | ||
Strategic Realignment | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 263 | ||
Refinement of previously established accruals | (6) | ||
Strategic Realignment | Asia Pacific | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 14 | ||
Strategic Realignment | North America | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 14 | ||
Productivity and Reinvestment | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 164 | 85 | 115 |
Productivity and Reinvestment | North America | |||
Other Operating Charges | |||
Refinement of previously established accruals | 1 | ||
CCA | |||
Other Income (Loss) - Net | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 695 | ||
Cambodia Bottling Operations | |||
Other Income (Loss) - Net | |||
Gain (Loss) on Disposition of Business | $ 153 | ||
Vietnam Bottling Operations | |||
Other Income (Loss) - Net | |||
Gain (Loss) on Disposition of Business | 439 | ||
Indonesia and Pakistan | |||
Other Income (Loss) - Net | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 94 | 695 | |
Other Operating Income (Expense) | |||
Other Operating Charges | |||
Business Exit Costs | 4 | ||
Other Operating Income (Expense) | Strategic Realignment | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 146 | ||
Other Nonoperating Income (Expense) | |||
Other Operating Charges | |||
Business Exit Costs | $ 32 | 266 | |
Other Nonoperating Income (Expense) | Strategic Realignment | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | $ 117 |
RESTRUCTURING - Strategic Reali
RESTRUCTURING - Strategic Realignment Initiatives Costs (Details) - Strategic Realignment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve | |||
Accrued balance as of January 1 | $ 3 | $ 23 | $ 185 |
Costs incurred | 263 | ||
Refinement of previously established accruals | (6) | ||
Payments | (2) | (15) | (303) |
Noncash and exchange | (1) | 1 | (122) |
Accrued balance as of December 31 | 0 | 3 | 23 |
Severance pay and benefits | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 2 | 20 | 181 |
Costs incurred | 224 | ||
Refinement of previously established accruals | (4) | ||
Payments | (2) | (15) | (265) |
Noncash and exchange | 0 | 1 | (120) |
Accrued balance as of December 31 | 0 | 2 | 20 |
Outside Services | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 1 | 1 | 1 |
Costs incurred | 0 | 37 | |
Payments | 0 | 0 | (35) |
Noncash and exchange | (1) | 0 | (2) |
Accrued balance as of December 31 | 0 | 1 | 1 |
Other direct costs | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 0 | 2 | 3 |
Costs incurred | 2 | ||
Refinement of previously established accruals | (2) | ||
Payments | 0 | 0 | (3) |
Noncash and exchange | 0 | 0 | 0 |
Accrued balance as of December 31 | $ 0 | $ 0 | $ 2 |
RESTRUCTURING - North America O
RESTRUCTURING - North America Operating Unit Restructuring (Details) - North America OU Restructuring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restructuring Reserve | ||
Accrued balance as of January 1 | $ 37 | |
Costs incurred | 27 | $ 38 |
Payments | (63) | (1) |
Accrued balance as of December 31 | 1 | 37 |
Severance pay and benefits | ||
Restructuring Reserve | ||
Accrued balance as of January 1 | 37 | |
Costs incurred | 22 | 38 |
Payments | (58) | (1) |
Accrued balance as of December 31 | 1 | 37 |
Outside Services | ||
Restructuring Reserve | ||
Accrued balance as of January 1 | 0 | |
Costs incurred | 1 | 0 |
Payments | (1) | 0 |
Accrued balance as of December 31 | 0 | 0 |
Other direct costs | ||
Restructuring Reserve | ||
Accrued balance as of January 1 | 0 | |
Costs incurred | 4 | 0 |
Payments | (4) | 0 |
Accrued balance as of December 31 | $ 0 | $ 0 |
RESTRUCTURING - Productivity an
RESTRUCTURING - Productivity and Reinvestment Initiatives Costs (Details) - Productivity and Reinvestment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve | |||
Accrued balance as of January 1 | $ 6 | $ 17 | $ 17 |
Costs incurred | 164 | 85 | 115 |
Payments | (166) | (94) | (117) |
Noncash and exchange | (1) | (2) | 2 |
Accrued balance as of December 31 | 3 | 6 | 17 |
Severance pay and benefits | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 4 | 12 | 15 |
Costs incurred | 4 | ||
Refinement of previously established accruals | (1) | (4) | |
Payments | 0 | (2) | (6) |
Noncash and exchange | 0 | (2) | (1) |
Accrued balance as of December 31 | 3 | 4 | 12 |
Outside Services | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 0 | 0 | 0 |
Costs incurred | 131 | 81 | 97 |
Payments | (124) | (81) | (97) |
Noncash and exchange | (7) | 0 | 0 |
Accrued balance as of December 31 | 0 | 0 | 0 |
Other direct costs | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 2 | 5 | 2 |
Costs incurred | 34 | 8 | 14 |
Payments | (42) | (11) | (14) |
Noncash and exchange | 6 | 0 | 3 |
Accrued balance as of December 31 | $ 0 | $ 2 | $ 5 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Strategic Realignment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Cost Incurred to Date | $ 684 |
North America OU Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Cost Incurred to Date | 65 |
Productivity and Reinvestment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Cost Incurred to Date | $ 4,293 |
OPERATING SEGMENTS - Total Net
OPERATING SEGMENTS - Total Net Operating Revenues Related to Concentrate and Finished Products Operation (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | |||
Concentrate operations | 58% | 56% | 56% |
Finished products operations | 42% | 44% | 44% |
Sales Revenue Net Percentage | 100% | 100% | 100% |
OPERATING SEGMENTS - Net Revenu
OPERATING SEGMENTS - Net Revenue and PPE by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net Operating Revenues | $ 45,754 | $ 43,004 | $ 38,655 |
Property, Plant and Equipment, Net | 9,236 | 9,841 | 9,920 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net Operating Revenues | 16,550 | 15,413 | 13,010 |
Property, Plant and Equipment, Net | 3,682 | 3,494 | 3,420 |
International | |||
Segment Reporting Information [Line Items] | |||
Net Operating Revenues | 29,204 | 27,591 | 25,645 |
Property, Plant and Equipment, Net | $ 5,554 | $ 6,347 | $ 6,500 |
OPERATING SEGMENTS - Informatio
OPERATING SEGMENTS - Information about Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | $ 45,754 | $ 43,004 | $ 38,655 |
Intersegment Revenue | 0 | 0 | 0 |
Net Operating Revenues | 45,754 | 43,004 | 38,655 |
Operating Income (Loss) | 11,311 | 10,909 | 10,308 |
Interest income | 907 | 449 | 276 |
Interest expense | 1,527 | 882 | 1,597 |
Depreciation and amortization | 1,128 | 1,260 | 1,452 |
Equity income (loss) — net | 1,691 | 1,472 | 1,438 |
Income (loss) before income taxes | 12,952 | 11,686 | 12,425 |
Identifiable operating assets | 77,914 | 73,998 | |
Investments | 19,789 | 18,765 | |
Capital expenditures | $ 1,852 | $ 1,484 | 1,367 |
Property, Plant and Equipment, Net Percentage India | 12% | ||
Property, Plant and Equipment, Net Percentage Philippines | 10% | ||
EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | $ 7,392 | $ 6,896 | 6,564 |
Intersegment Revenue | 686 | 627 | 629 |
Net Operating Revenues | 8,078 | 7,523 | 7,193 |
Operating Income (Loss) | 4,202 | 3,958 | 3,735 |
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 59 | 63 | 76 |
Equity income (loss) — net | 16 | 43 | 33 |
Income (loss) before income taxes | 4,255 | 3,952 | 3,821 |
Identifiable operating assets | 7,117 | 7,088 | |
Investments | 389 | 410 | |
Capital Expenditures | 43 | 50 | 35 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 5,830 | 4,910 | 4,143 |
Intersegment Revenue | 0 | 0 | 0 |
Net Operating Revenues | 5,830 | 4,910 | 4,143 |
Operating Income (Loss) | 3,432 | 2,870 | 2,534 |
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 48 | 39 | 39 |
Equity income (loss) — net | 9 | 7 | 9 |
Income (loss) before income taxes | 3,404 | 2,879 | 2,542 |
Identifiable operating assets | 3,149 | 2,067 | |
Investments | 712 | 629 | |
Capital Expenditures | 1 | 4 | 2 |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 16,766 | 15,667 | 13,184 |
Intersegment Revenue | 8 | 7 | 6 |
Net Operating Revenues | 16,774 | 15,674 | 13,190 |
Operating Income (Loss) | 4,435 | 3,742 | 3,331 |
Interest income | 47 | 29 | 40 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 310 | 330 | 388 |
Equity income (loss) — net | 0 | (1) | 22 |
Income (loss) before income taxes | 4,450 | 3,768 | 3,140 |
Identifiable operating assets | 25,808 | 25,760 | |
Investments | 15 | 15 | |
Capital Expenditures | 412 | 280 | 228 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 4,724 | 4,711 | 4,682 |
Intersegment Revenue | 731 | 734 | 609 |
Net Operating Revenues | 5,455 | 5,445 | 5,291 |
Operating Income (Loss) | 2,040 | 2,303 | 2,325 |
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 50 | 58 | 49 |
Equity income (loss) — net | (146) | 9 | 8 |
Income (loss) before income taxes | 1,905 | 2,320 | 2,350 |
Identifiable operating assets | 2,428 | 2,368 | |
Investments | 71 | 219 | |
Capital Expenditures | 23 | 22 | 65 |
Global Ventures | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 3,064 | 2,843 | 2,805 |
Intersegment Revenue | 0 | 0 | 0 |
Net Operating Revenues | 3,064 | 2,843 | 2,805 |
Operating Income (Loss) | 329 | 185 | 293 |
Interest income | 6 | 9 | 10 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 128 | 140 | 135 |
Equity income (loss) — net | 0 | 0 | (6) |
Income (loss) before income taxes | 338 | 196 | 310 |
Identifiable operating assets | 7,607 | 7,325 | |
Investments | 0 | 0 | |
Capital Expenditures | 192 | 179 | 285 |
Bottling Investments | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 7,852 | 7,883 | 7,194 |
Intersegment Revenue | 8 | 8 | 9 |
Net Operating Revenues | 7,860 | 7,891 | 7,203 |
Operating Income (Loss) | 578 | 487 | 473 |
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 389 | 435 | 529 |
Equity income (loss) — net | 1,495 | 1,184 | 1,071 |
Income (loss) before income taxes | 2,119 | 1,743 | 1,596 |
Identifiable operating assets | 9,871 | 10,232 | |
Investments | 13,639 | 12,892 | |
Capital Expenditures | 843 | 697 | 560 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 126 | 94 | 83 |
Intersegment Revenue | 0 | 0 | 2 |
Net Operating Revenues | 126 | 94 | 85 |
Operating Income (Loss) | (3,705) | (2,636) | (2,383) |
Interest income | 854 | 411 | 226 |
Interest expense | 1,527 | 882 | 1,597 |
Depreciation and amortization | 144 | 195 | 236 |
Equity income (loss) — net | 317 | 230 | 301 |
Income (loss) before income taxes | (3,519) | (3,172) | (1,334) |
Identifiable operating assets | 21,934 | 19,158 | |
Investments | 4,963 | 4,600 | |
Capital Expenditures | 338 | 252 | 192 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenue for Reportable Segments | 0 | 0 | 0 |
Intersegment Revenue | (1,433) | (1,376) | (1,255) |
Net Operating Revenues | (1,433) | (1,376) | (1,255) |
Operating Income (Loss) | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Equity income (loss) — net | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Identifiable operating assets | 0 | 0 | |
Investments | 0 | 0 | |
Capital Expenditures | $ 0 | $ 0 | $ 0 |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Debt and Equity Securities, Gain (Loss) | $ 289 | $ (371) | $ 467 |
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 159 | 34 | 13 |
Litigation Settlement, Expense | 8 | 15 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | 114 | |
Charges related to debt extinguishment | 650 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 57 | 78 |
Equity Method Investment, Other than Temporary Impairment | 39 | 96 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | (24) | |
Pension and other postretirement benefit plan settlement charges | 67 | ||
fairlife | |||
Segment Reporting Information [Line Items] | |||
Charges related to the remeasurement of contingent consideration liability | 1,702 | 1,000 | 369 |
BodyArmor | |||
Segment Reporting Information [Line Items] | |||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | (15) | (38) | |
Business Acquisition, Transaction Costs | 119 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 834 | ||
Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 263 | ||
Refinement of previously established accruals | (6) | ||
Productivity and Reinvestment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 164 | 85 | 115 |
CCA | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 695 | ||
Cambodia Bottling Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (Loss) on Disposition of Business | 153 | ||
Indonesia and Pakistan | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 94 | 695 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 78 | ||
Equity Method Investment, Other than Temporary Impairment | 96 | ||
EMEA | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 61 | ||
Refinement of previously established accruals | (7) | ||
Latin America | |||
Segment Reporting Information [Line Items] | |||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 5 | ||
Equity Method Investment, Other than Temporary Impairment | 39 | ||
Latin America | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 12 | ||
North America | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 27 | 38 | |
Business Exit Costs | 50 | 34 | 316 |
North America | BodyArmor | |||
Segment Reporting Information [Line Items] | |||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | 21 | ||
Business Acquisition, Transaction Costs | 21 | ||
North America | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 14 | ||
North America | Productivity and Reinvestment | |||
Segment Reporting Information [Line Items] | |||
Refinement of previously established accruals | 1 | ||
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Business Exit Costs | 35 | ||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 146 | ||
Impairment of Intangible Assets (Excluding Goodwill) | 57 | ||
Asia Pacific | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 14 | ||
Bottling Investments | |||
Segment Reporting Information [Line Items] | |||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 7 | 34 | 45 |
Bottling Investments | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 2 | ||
Corporate | |||
Segment Reporting Information [Line Items] | |||
Business Exit Costs | 2 | 2 | |
Gain (Loss) on Disposition of Business | 439 | ||
Debt and Equity Securities, Gain (Loss) | 289 | (371) | 467 |
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 1 | (32) | |
Litigation Settlement, Expense | 8 | 15 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 114 | ||
Charges related to debt extinguishment | 650 | ||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | ||
Pension and other postretirement benefit plan settlement charges | 67 | ||
Corporate | fairlife | |||
Segment Reporting Information [Line Items] | |||
Charges related to the remeasurement of contingent consideration liability | 1,702 | 1,000 | 369 |
Corporate | BodyArmor | |||
Segment Reporting Information [Line Items] | |||
Business Combination, Separately Recognized Transactions, Net Gains and Losses | (15) | (59) | |
Business Acquisition, Transaction Costs | 98 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 834 | ||
Corporate | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 160 | ||
Refinement of previously established accruals | 1 | ||
Corporate | Productivity and Reinvestment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 165 | 85 | 115 |
Corporate | Cambodia Bottling Operations | |||
Segment Reporting Information [Line Items] | |||
Gain (Loss) on Disposition of Business | 153 | ||
Operating Income (Loss) | EMEA | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 63 | ||
Operating Income (Loss) | Latin America | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 11 | ||
Operating Income (Loss) | North America | |||
Segment Reporting Information [Line Items] | |||
Business Exit Costs | $ 18 | $ 33 | 52 |
Operating Income (Loss) | Asia Pacific | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | 12 | ||
Operating Income (Loss) | Corporate | Strategic Realignment | |||
Segment Reporting Information [Line Items] | |||
Productivity, integration and restructuring initiatives | $ 46 |
NET CHANGE IN OPERATING ASSET_3
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Operating Capital [Abstract] | |||
(Increase) decrease in trade accounts receivable | $ (2) | $ (69) | $ (225) |
(Increase) decrease in inventories | (597) | (960) | (135) |
(Increase) decrease in prepaid expenses and other current assets | (323) | 225 | (241) |
Increase (decrease) in accounts payable and accrued expenses | 841 | 759 | 2,843 |
Increase (decrease) in accrued income taxes | (578) | (360) | (566) |
Increase (decrease) in other noncurrent liabilities | (187) | (200) | (351) |
Net change in operating assets and liabilities | $ (846) | $ (605) | $ 1,325 |